Based on published estimates of its price elasticity of demand and of tax wedges, as well as the method of revealed preference, I estimate that the annual social value of ESI is about $1.5 trillion beyond what policyholders, their employers, and taxpayers pay for it. The private component of...

I develop a search model of the labor market in which acute illness prevents workers from engaging in labor market activities to better understand the productivity-enhancing effects of employer-sponsored health insurance (ESHI). On top of bargaining over wages and ESHI coverages, I model the...

Based on published estimates of its price elasticity of demand and of tax wedges, as well as the method of revealed preference, I estimate that the annual social value of ESI is about $1.5 trillion beyond what policyholders, their employers, and taxpayers pay for it. The private component of...