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Arnaud Chéron, Pierre-jean Messe and Jerome Ronchetti
''Employer-provided health insurance and equilibrium wages with two-sided heterogeneity''
( 2015, Vol. 35 No.2 )
This paper develops an equilibrium search model that allows firms to invest in worker's health. Heterogeneous health endowment of the employee is not observed by the employer, and firms also differ regarding their productivity. We emphasize that wage and health expenditure policies of the employer are tightly related, and show how those policies relate to firms' type. A noticeable implication is that there is an ambiguous relationship between firm's type, wages and health expenditures.
Keywords: wages, search, health expenditures
JEL: J3 - Wages, Compensation, and Labor Costs: General
Manuscript Received : Dec 18 2014 Manuscript Accepted : May 14 2015

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