Paul Fronstin

Welfare benefits and birth decisions of never-married women

For some time now, the out-of-wedlock birthrate has been increasing rapidly in the United States. This has prompted several states to propose (and in some cases, enact) legislation to deny access to higher AFDC benefits for families in which the mother gives birth while receiving AFDC. The authors investigate whether AFDC benefit levels are systematically related to the family-size decisions of never-married women. Using a bivariate probit model with state and time fixed effects, applied to Current Population Survey data for the years 1980–1988, it is found that the basic benefit level for a family of two (one adult and one child) and the incremental benefit for a second child positively affects the family size decisions of black and Hispanic women, but not of white women. The effects are concentrated among high school dropouts (no effects are found for high school graduates). The authors conclude that rather than to uniformly deny benefits to all AFDC women that bear children, a better targeted policy might be to alter the AFDC benefit structure in such a way as to encourage single mothers to complete high school. However, being a high school dropout might be a proxy for some other underlying characteristic of the woman, and encouraging women to complete high school who otherwise would not might have no effect whatsoever on nonmarital births.

Consumer-Directed Health Plans Reduce The Long-Term Use Of Outpatient Physician Visits And Prescription Drugs

Consumer-directed health plans (CDHPs) are designed to make employees more cost- and health-conscious by exposing them more directly to the costs of their care, which should lower demand for care and, in turn, control premium growth. These features have made consumer-directed plans increasingly attractive to employers. We explored effects of consumer-directed health plans on health care and preventive care use, using data from two large employers-one that adopted a CDHP in 2007 and another with no CDHP. Our study had mixed results relative to expectations. After four years under the CDHP, there were 0.26 fewer physician office visits per enrollee per year and 0.85 fewer prescriptions filled, but there were 0.018 more emergency department visits. Also, the likelihood of receiving recommended cancer screenings was lower under the CDHP after one year and, even after recovering somewhat, still lower than baseline at the studys conclusion. If CDHPs succeed in getting people to make more cost-sensitive decisions, plan sponsors will have to design plans to incentivize primary care and prevention and educate members about what the plan covers.

The early retirement plans of women and men: an empirical application

This paper deals with the factors that influence plans to retire from the labour force. We use a theoretical model to explain the empirical findings from a bivariate probit model relating economic, demographic, and social characteristics to retirement plans for over 7000 women and men between the ages of 40 and 64. The results of the analysis concerning retirement intentions suggest that personal, economic and household characteristics are more important determinants of retirement plans for women than men.

Employment-Based Health Benefits: Recent Trends and Future Outlook

The employment-based health benefits system established its roots many years ago. It was during World War II that many more employers began to offer health benefits. Recently, however, both the percentage of workers with employment-based health benefits and the comprehensiveness of such coverage have been declining. This paper examines recent trends in employment-based health benefits. It also considers the likely future of this important workplace benefit in light of shifts from defined benefit to defined contribution models of employee benefits and with regard to the implementation of health reform.

WAGE GAINS FROM BETTER HEALTH AND EMPLOYMENT-BASED HEALTH INSURANCE

The ultimate goal of this paper is to determine the differential effects of health insurance and health status on earnings. We believe that employment-based health insurance serves two purposes. First, health insurance provides protection against catastrophic financial losses associated with illness. Second, health insurance encourages consumption of health care services, which may ultimately improve a person’s health and productivity. To determine how health insurance and health status affect earnings, we estimate an empirical model that specifically examines the relationship between health insurance, health status, and earnings. We find the following. Earnings positively affect the likelihood of having health insurance. Having health insurance improved health status for women, but not for men. Higher earnings resulted in lower health status for women, but had no effect on the health status of men, and better health status and having health insurance increased earnings for both women and men. Our analysis implies that there are some returns to employment-based health insurance that go beyond the basic purpose of insurance.