An official website of the United States government
Abstract Research SummaryThis article examines whether the Affordable Care Act (ACA) health insurance reform reduced the gender gap in science, technology, engineering, and mathematics (STEM) entrepreneurship. I argue that the ACA mitigated mobility constraints imposed by employer‐provided health insurance and encouraged entrepreneurship with important contingencies: effects were limited to women because of gender differences in supply‐side cost reduction and demand‐side health insurance needs and were specific to women in STEM (vs. non‐STEM) entrepreneurship because of the human and financial capital needed to navigate insurance markets. Leveraging the ACA quasi‐experiment, I find consistent evidence of a reduced gender gap in STEM entrepreneurship. Surprisingly, the effects were driven by increased STEM entrepreneurship for married women founding unincorporated businesses. Qualitative interview insights and empirical findings provide explanations for these patterns. Managerial SummaryThis study examines whether the science, technology, engineering, and mathematics (STEM) entrepreneurial gender gap can be reduced by institutional factors mitigating labor market mobility constraints imposed by employer‐provided work benefits. Through the lens of the US ACA reform, I find that broadened access to more affordable health insurance in the alternative individual insurance markets disproportionately encouraged female (vs. male) STEM (vs. non‐STEM) entrepreneurship, thus reducing the STEM entrepreneurial gender gap. Contrary to common assumptions, this effect is driven by married (vs. unmarried) women and is in unincorporated (vs. incorporated) self‐employment. The findings help discern which groups benefit from policy efforts to promote diversity in STEM entrepreneurship and imply that the effectiveness of employer‐provided work benefits as retention tools is dependent on various worker characteristics.
more »
« less
The Affordable Care Act After a Decade: Its Impact on the Labor Market and the Macro Economy
The Affordable Care Act (ACA) is one of the most important reforms of the US health insurance system since the introduction of Medicare. Because employment is a main source of health insurance for the working-age population in the USA, this sweeping health insurance reform has also had important implications for the labor market and the macro economy. In this article, we review the prototype models that are used in the macro and labor literature, extended to integrate health and health insurance, to study the short- and long-run consequences of the ACA. We also suggest open areas for future research.
more »
« less
- Award ID(s):
- 1757084
- PAR ID:
- 10396315
- Date Published:
- Journal Name:
- Annual Review of Economics
- Volume:
- 14
- Issue:
- 1
- ISSN:
- 1941-1383
- Page Range / eLocation ID:
- 453 to 494
- Format(s):
- Medium: X
- Sponsoring Org:
- National Science Foundation
More Like this
-
-
Consumption Insurance against Wage Risk: Family Labor Supply and Optimal Progressive Income Taxationnull (Ed.)We show that a calibrated life cycle two-earner household model with endogenous labor supply can rationalize the extent of consumption insurance against shocks to male and female wages, as estimated empirically by Blundell, Pistaferri, and Saporta-Eksten (2016) in US data. In the model, 35 percent of male and 18 percent of female permanent wage shocks pass through to consumption, compared to the empirical estimates of 32 percent and 19 percent. Most of the consumption insurance against permanent male wage shocks is provided through the presence and labor supply response of the female earner. Abstracting from this private intrahousehold income insurance mechanism strongly biases upward the welfare losses from idiosyncratic wage risk as well as the desired extent of public insurance through progressive income taxation. Relative to the standard one-earner life cycle model, the optimal degree of tax progressivity is significantly lower and the welfare gains from implementing the optimal system are cut roughly in half. (JEL D15, H21, H24, J16, J22, J31)more » « less
-
Recent reporting has revealed that the UK Biobank (UKB)—a large, publicly-funded research database containing highly-sensitive health records of over half a million participants—has shared its data with private insurance companies seeking to develop actuarial AI systems for analyzing risk and predicting health. While news reports have characterized this as a significant breach of public trust, the UKB contends that insurance research is “in the public interest,” and that all research participants are adequately protected from the possibility of insurance discrimination via data de-identification. Here, we contest both of these claims. Insurers use population data to identify novel categories of risk, which become fodder in the production of black-boxed actuarial algorithms. The deployment of these algorithms, as we argue, has the potential to increase inequality in health and decrease access to insurance. Importantly, these types of harms are not limited just to UKB participants: instead, they are likely to proliferate unevenly across various populations within global insurance markets via practices of profiling and sorting based on the synthesis of multiple data sources, alongside advances in data analysis capabilities, over space/time. This necessitates a significantly expanded understanding of the publics who must be involved in biobank governance and data-sharing decisions involving insurers.more » « less
-
This paper argues that high marginal labor income tax rates on top earners are an effective tool for social insurance even when households have high labor supply elasticity, households make dynamic savings decisions, and policies have general equilibrium effects. We construct a large-scale overlapping generations model with uninsurable labor productivity risk, show that it has a realistic wealth distribution, and numerically characterize the optimal top marginal rate. We find that marginal tax rates for top 1 percent earners of 79 percent are optimal as long as the model earnings and wealth distributions display a degree of concentration as observed in US data. (JEL D15, D31, H21, H24, H55, J22, J31)more » « less
-
In this article, we ask whether macro-level changes during the first year of the COVID-19 pandemic relate to changes in the levels of discrimination against women and Black job-seekers at the point of hire. We develop three main hypotheses: that discrimination against women and Black job-seekers increases due to a reduction in labor demand; that discrimination against women decreases due to the reduced supply of women employees and applicants; and that discrimination against Black job-seekers decreases due to increased attention toward racial inequities associated with the Black Lives Matter protests during the summer of 2020. We test these hypotheses using a correspondence audit study collected over two periods, before and during the early COVID-19 pandemic, for one professional occupation: accountants. We find that White women experience a positive change in callbacks during the pandemic, being preferred over White men, and this change is concentrated in geographic areas that experienced relatively larger decreases in women's labor supply. Black women experience discrimination pre-pandemic but receive similar callbacks to White men during the pandemic. In contrast to both White and Black women, discrimination against Black men is persistent before and during the pandemic. Our findings are consistent with the prediction of gender-specific changes in labor supply being associated with gender-specific changes in hiring discrimination during the COVID-19 pandemic. More broadly, our study shows how hiring decision-making is related to macro-level labor market processes.more » « less
- Free Publicly Accessible Full Text
-
Accepted Manuscript1.0
- Journal Article:
- https://doi.org/10.1146/annurev-economics-051420-115149
