Health Insurance And Productivity: Evidence From The Manufacturing Sector

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Executive Summary

This paper examines the relationship between employer-sponsored offers of health insurance and establishments' labor productivity. The authors' empirical work is based on unique plant level data that links the 1997 and 2002 Medical Expenditure Panel Survey-Insurance Component with the 1992, 1997, and 2002 Census of Manufactures. These linked data provide information on employer-provided insurance and productivity. They find that health insurance offers are positively associated with levels of establishments' labor productivity. These findings hold for all manufacturers as well as those with fewer than 100 employees.

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