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The Labor Market Effects of Introducing National Health Insurance: Evidence from Canada / Jonathan Gruber, Maria Hanratty.

By: Contributor(s): Material type: TextTextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w4589.Publication details: Cambridge, Mass. National Bureau of Economic Research 1993.Description: 1 online resource: illustrations (black and white)Subject(s): Online resources: Available additional physical forms:
  • Hardcopy version available to institutional subscribers
Abstract: While National Health Insurance (NHI) plans in the U.S. are often opposed on the basis of their potential disemployment effects, there is no existing evidence on the effects of NHI on employment. We provide such evidence by examining the employment consequences of NHI in Canada, using the fact that NHI was introduced on a staggered basis across the Canadian provinces. We examine monthly data on employment, wages, and hours across 8 industries and 10 provinces over the 1961- 1975 period. We find that employment actually rose after the introduction of NHI; wages increased as well, while average hours were unchanged.
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December 1993.

While National Health Insurance (NHI) plans in the U.S. are often opposed on the basis of their potential disemployment effects, there is no existing evidence on the effects of NHI on employment. We provide such evidence by examining the employment consequences of NHI in Canada, using the fact that NHI was introduced on a staggered basis across the Canadian provinces. We examine monthly data on employment, wages, and hours across 8 industries and 10 provinces over the 1961- 1975 period. We find that employment actually rose after the introduction of NHI; wages increased as well, while average hours were unchanged.

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