Economist: Obamacare to Encourage Part-Time Employment, Cost Taxpayers

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While much has been made of the Patient Affordable Care Act, or as it has been politically dubbed, ‘Obamacare,’ studies and analysis are increasingly scrutinizing the effects the law is going to have on health insurance in the United States.

Writing for The New York Time’s Economix blog, University of Chicago professor Casey B. Mulligan explored a startling way in which the Affordable Care Act is going to change the dynamics of the labor market.

Mulligan is the author of The Redistribution Recession: How Labor Market Distortions Contracted the Economy in which he argues that features varying from minimum wage laws to tax rates deepened, or very possibly caused the recession by distorting incentives and causing massive job loss.

Similarly, he argues in his piece for Economix that Obamacare will make employees and employers alike opt for part-time hiring, a feature which could profoundly change the way American industry operates.

While he points out that a “lack of health benefits and the lower pay for part-time work have traditionally discouraged people from taking part-time jobs rather than full-time jobs,” now, he says, “Because part-time workers will be eligible for the subsidies except in the rare instances in which their employer covers them, full-time work will no longer carry the advantage of access to health insurance. That by itself will encourage more people to seek part-time work.”

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