Health Insurance and Worker Retention in the Construction Industry |
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Authors: | Jaewhan Kim Peter Philips |
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Institution: | (1) Division of Public Health, Department of Family and Preventive Medicine, University of Utah, 375 Chipeta Way, Suite A, Salt Lake City, UT 84108, USA;(2) Department of Economics, University of Utah, 1645 Campus Center Dr. Room 308, Business Classroom Building #2, Salt Lake City, UT 84112-9300, USA |
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Abstract: | Using samples of blue collar construction workers from the 1996 and 2001 SIPP, a shared frailty survival model shows that
controlling for wages, occupational and demographic factors, both portable union and nonportable nonunion employer-provided
health insurance increase the probability of worker retention within the construction industry. Portable union health insurance
increases the probability of worker-industry retention by 30 to 41% compared to 13 to 18% for nonunion employer-provided insurance.
Our research suggests that by encouraging industry retention, health insurance preserves and encourages the accumulation of
human capital in a turbulent industry with high firm-and-industry-labor turnover and also may reduce worker disabilities by
immediately treating medical problems. Furthermore, in the union sector of construction where health insurance is portable
across signatory contractors, the problem of job-lock inefficiencies is reduced. |
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Keywords: | |
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