Estimating the Compensating Differential for Employer-Provided Health Insurance

@article{Miller2004EstimatingTC,
  title={Estimating the Compensating Differential for Employer-Provided Health Insurance},
  author={Richard D. Miller},
  journal={International Journal of Health Care Finance and Economics},
  year={2004},
  volume={4},
  pages={27-41}
}
  • Richard D. Miller
  • Published 1 March 2004
  • Economics
  • International Journal of Health Care Finance and Economics
The theory of wage differentials argues that workers must pay for employer-provided group health insurance coverage through lower wages or reductions in other fringe benefits. This paper uses data from the 1988–90 Consumer Expenditure Survey (CEX) to estimate the wage-health insurance trade-off for male workers between the ages of 25 and 55. A fixed-effects model, which takes advantage of the rotating panel design of the CEX, is used to control for unobservable worker characteristics that are… 

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