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Employment and Adverse Selection in Health Insurance
National Bureau of Economic Research [NBER]Link to more items from this source
Aug. 28, 2006

Excerpt: [The authors] construct and test a new model of employer-provided health insurance provision in the presence of adverse selection in the health insurance market. In [the] model, employers cannot observe the health of their employees, but can decide whether to offer insurance. Employees sort themselves among employers who do and do not offer insurance on the basis of their current health status and the probability distribution over future health status changes.

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