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UID:10000545-1744972200-1744977600@uwm.edu
SUMMARY:Retention Costs or Human Capital Investments: A Dual Perspective on Employer-Sponsored Health Benefits?
DESCRIPTION:Part of the Lubar Research Seminar Series \nSpeaker:  Xuelin Li\, Columbia University\n \nEmployer-sponsored health insurance is the predominant coverage source for the U.S. workforce\, yet the rationale behind firms’ provision of these benefits remains debated. We examine two primary motivations: as a retention mechanism reducing employee turnover\, and as a human capital investment enhancing workforce productivity. To disentangle these perspectives\, we exploit policy-induced shocks to labor mobility and track firms’ benefit adjustments. We employ a stacked difference-in-differences approach using novel datasets on health plan details\, individual healthcare utilization\, and state-level variations in non-compete agreement (NCA) enforceability from 2013 to 2020. Our results show that increased NCA enforceability leads firms to lower premiums primarily by shifting to High-Deductible Health Plans (HDHPs). This shift\, in turn\, boosts HDHP enrollment rates and significantly reshapes healthcare utilization among affected employees\, leading to fewer preventive care visits but a greater incidence of severe\, high-cost medical procedures. Overall\, our findings support the retention cost perspective while also highlighting the unintended long-term consequences of such cost-saving strategies
URL:/business/event/retention-costs-investments/
LOCATION:Lubar Hall\, N440\, 3202 N. Maryland Ave.\, Milwaukee\, WI\, 53201\, United States
CATEGORIES:Research Seminar Series
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