One of the objections to the Affordable Care Act is that it will encourages employers to cut employee hours to create more part time work in order to avoid the law’s requirement that it provide health insurance benefits for all full-time employees. This means that workers hours will be cut and as a result employees will find themselves without insurance and declining wages. Recently, two different economist have offered competing arguments for and against this objection.
Does the ACA’s requirement that employers provide insurance for all full-time employees create more part-time work?
The answer is yes according to Casey Mulligan, a professor of economics at University of Chicago. Read the full article here.
However, a recent analysis of the difference between predicted part-time work and actual part-time jobs created since the ACA went into effect shows that there is no evidence to support this objection. Jared Bernstein, a Senior Fellow at the Center for Budget Policy and Priorities, investigated the data and found no proof for this commonly made criticism of Obamacare. Read the full article here.