This paper uses the MEDSIM health care microsimulation model developed by researchers at the Agency for Healthcare Research and Quality to compute the magnitude and distribution of the tax subsidy for employment-related health insurance premiums. We also present estimates of the revenue gain...

While economic theory predicts that workers bear the cost of rising health insurance premiums with reductions in wages and/or other benefits, empirical evidence on the existence of a wage-health insurance tradeoff has been mixed. Empirical analyses have been hampered by the fact that individuals...