Research Seminar with Zack Cooper, PhD

We analyze the economic consequences of rising health care prices in the U.S. Using exposure to price increases caused by horizontal hospital mergers as an instrument, we show that rising prices raise the cost of labor by increasing employer-sponsored health insurance premiums. A 1% increase in health care prices lowers both payroll and employment at firms outside the health sector by approximately 0.4%. At the county level, a 1% increase in health care prices reduces per capita labor income by 0.27%, increases flows into unemployment by approximately 0.1 percentage points (1%), lowers federal income tax receipts by 0.4%, and increases unemployment insurance payments by 2.5%. The increases in unemployment we observe are concentrated among workers earning between $20,000 and $100,000 annually. Finally, we estimate that a 1% increase in health care prices leads to a 1 per 100,000 population (2.7%) increase in deaths from suicides and overdoses. This implies that approximately 1 in 140 of the individuals who become fully separated from the labor market after health care prices increase die from a suicide or drug overdose.

Please note: In-person attendance at this event is preferred. Virtual access will be provided to registrants who are unable to be on campus.

Speaker

Zack Cooper, PhD

Associate Professor, Public Health; Associate Professor of Economics; Associate Professor, Institution for Social and Policy Studies, Yale School of Public Health

Zack Cooper, PhD is an Associate Professor of Public Health and Associate Professor of Economics at Yale University. He also serves as Director of Health Policy at Yale’s Tobin Center for Economic Policy. Professor Cooper is a health economist whose work is focused on producing data-driven scholarship that can inform public policy. In his academic work, he has analyzed the impact of competition in hospital and insurance markets, studied the influence of price transparency on consumer behavior, investigated the causes of surprise out-of-network bills, and examined the influence of electoral politics on health care spending growth. Cooper has published his research in leading economics and medical journals including the Quarterly Journal of Economics and the New England Journal of Medicine. He has also presented his research at The White House, the Department of Justice, the Federal Trade Commission, and the Department of Health and Human Services.