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The Incidence of Mandated Maternity Benefits

Jonathan Gruber
The American Economic Review
Vol. 84, No. 3 (Jun., 1994), pp. 622-641
Stable URL: http://www.jstor.org/stable/2118071
Page Count: 20
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The Incidence of Mandated Maternity Benefits
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Abstract

I consider the labor-market effects of mandates which raise the costs of employing a demographically identifiable group. The efficiency of these policies will be largely dependent on the extent to which their costs are shifted to group-specific wages. I study several state and federal mandates which stipulated that childbirth be covered comprehensively in health insurance plans, raising the relative cost of insuring women of childbearing age. I find substantial shifting of the costs of these mandates to the wages of the targeted group. Correspondingly, I find little effect on total labor input for that group.

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