Working Paper

1. "Medical debt, Self-Insurance, and the Value of Health Insurance for the Non-Elderly" Job Market Paper

Abstract: In the US, about 60% of non-elderly workers are insured through employer-sponsored health insurance (ESHI). This paper studies how non-elderly workers manage various forms of insurance to cope with medical expenditure shocks and how their coping strategies affect job search decisions. Specifically, I examine the role of self-insurance through saving/borrowing and delaying medical bill payments. To that end, I develop and estimate a job search model in which individuals can insure themselves against medical expenditure shocks in three ways: (1) by enrolling in ESHI, (2) by saving and borrowing, and (3) by accumulating medical debt and repaying them over time. The findings reveal significant variation in the valuation of ESHI, with higher valuations among workers with a limited to moderate amount of net liquid assets and a larger amount of medical debt. Consequently, such uninsured workers who value ESHI more accept jobs with ESHI at lower wages and transition to a job with ESHI more often.

2. "Shrinking Populations, Aging, and Access to Healthcare: Evidence from Japan" (with Toshiaki Iizuka)