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Research ArticleArticles

Effects of the Affordable Care Act on Part-Time Employment

Early Evidence

View ORCID ProfileMarcus Dillender, View ORCID ProfileCarolyn J. Heinrich and View ORCID ProfileSusan Houseman
Journal of Human Resources, July 2022, 57 (4) 1394-1423; DOI: https://doi.org/10.3368/jhr.57.4.0718-9623R2
Marcus Dillender
Marcus Dillender is an assistant professor at the University of Illinois at Chicago and a faculty research fellow at the National Bureau of Economic Research ().
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Carolyn J. Heinrich
Carolyn J. Heinrich is the Patricia and Rodes Hart professor of public policy, education, and economics at Vanderbilt University.
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Susan Houseman
Susan Houseman is a senior economist at the W.E. Upjohn Institute for Employment Research.
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ABSTRACT

The Affordable Care Act (ACA) requires employers with at least 50 full-timeequivalent employees to offer “affordable” health insurance to employees working 30 or more hours per week. Employers who do not comply may face substantial penalties, but they can circumvent the mandate by reducing employees’ weekly hours below the 30-hour threshold. We examine ACA’s effects on short-hours part-time employment using difference-in-differences models. We find that the ACA increased low-hours, involuntary part-time employment by 500,000–700,000 workers in retail, accommodations, and food services, the industries in which employers are most likely to reduce hours if they choose to circumvent the mandate.

JEL Classification:
  • J23
  • I13
  • Received July 2018.
  • Accepted April 2020.
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Journal of Human Resources: 57 (4)
Journal of Human Resources
Vol. 57, Issue 4
1 Jul 2022
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Effects of the Affordable Care Act on Part-Time Employment
Marcus Dillender, Carolyn J. Heinrich, Susan Houseman
Journal of Human Resources Jul 2022, 57 (4) 1394-1423; DOI: 10.3368/jhr.57.4.0718-9623R2

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Effects of the Affordable Care Act on Part-Time Employment
Marcus Dillender, Carolyn J. Heinrich, Susan Houseman
Journal of Human Resources Jul 2022, 57 (4) 1394-1423; DOI: 10.3368/jhr.57.4.0718-9623R2
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  • Article
    • ABSTRACT
    • I. Introduction
    • II. Background on Employer Mandates for Health Insurance and Prior Research
    • III. Potential Effects of the ACA on Part-Time Employment
    • IV. Data Description and Trends in Part-Time Work
    • V. The Impact of the Affordable Care Act on Part-Time Work
    • VI. Robustness and Heterogeneity
    • VII. Conclusion
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Keywords

  • J23
  • I13
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