The incidence of the healthcare costs of chronic conditions.

TitleThe incidence of the healthcare costs of chronic conditions.
Publication TypeJournal Article
Year of Publication2021
AuthorsLee, KMin, Jeung, C
JournalInternational Journal of Health Economics and Management
ISSN Number2199-9031
KeywordsChronic disease, Compensating wage differential, Employer-sponsored health insurance, Wage

Who pays for the costs of chronic conditions? In this paper, we examine whether 50-64-year old workers covered by employer-sponsored insurance bear healthcare costs of chronic conditions in the form of lower wages. Using a difference-in-differences approach with data from the Health and Retirement Study, we find that workers with chronic diseases receive significantly lower wages than healthy workers when they are covered by employer-sponsored insurance. Our findings suggest that higher healthcare costs of chronic conditions can explain the substantial part of the wage gap between workers with and without chronic diseases.

Citation Key11605
PubMed ID33945052
Grant ListRG-201710-3097 / / Ewing Marion Kauffman Foundation /