Acute illness and job lock

This paper assesses if the experience of an acute illness generates decreased job mobility among workers with employer-sponsored health insurance. An acute illness may increase the perceived value of health insurance and “lock” workers into jobs that provide health insurance as compensation. Using difference-in-difference tests, I evaluate the presence of job lock among workers impacted by acute health problems in Panel 19 of the Medical Expenditure Panel Survey. The results provide inconclusive evidence of job lock related to the experience of an acute illness. Further research on acute illness-related job lock can explore the potential long-term impact of job lock and different measures for acute illness to limit the effects of endogeneity in empirical models