Over the past fifteen years, dozens of studies have documented the detrimental impact that job lock has on the economy.
Job lock is a serious problem for our society, because one of the bedrocks of our long-term economic success is our fluid labor markets compared to other nations, like France and Germany, that make it expensive and administratively burdensome to hire new employees or to fire unproductive ones.
There are fewer direct studies of the impact of job lock on entrepreneurship.
16) The separation analysis bears some similarity to the job lock
These factors create market distortions and give rise to job lock situations.
Under a job lock environment, the sorting mechanism that matches worker characteristics with job characteristics does not work.
MEPS and its predecessor, the National Medical Expenditure Survey, files have been used by a few researchers to investigate issues such as employer-provided insurance and job lock and health-care use.
The most well-known policy responses to job lock have been the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) and the Health Insurance Portability and Accountability Act of 1996 (HIPAA).
If some of these individuals would have separated from their employer had health insurance been completely portable, job lock arises.
Although job lock
as currently defined may not be a problem under many of the reform plans being considered, subsidies such as those spelled out in the Health Security Act could make it quite costly for low-wage workers at fully subsidized firms to move to an unsubsidized firm or to one subsidized at a lower rate.
Empirical analyses of job lock have emphasized the possible reduction in mobility that occurs when some portion of compensation comes in the form of health insurance.
Others find job lock effects for some labor force groups or equation specifications (for example, Gilleskie and Lutz 1999 for unmarried men; Buchmueller and Valletta 1996 for women; and Penrod 1995 for some equations for married men).