We suspect Lloyd Blankfein will be receiving a call from The White House (or Treasury) very soon as Goldman Sachs’ economists did the unthinkable in the age of political correctness – while investigating the state of under-employment in America, the smartest people in the room found that ObamaCare has led to a rise in involuntary part-time employment, estimating that “a few hundred thousand workers” have been forced to cut hours and has “created disincentives for full-time employment.”
Goldman’s Jan Hatzius explains that they find mixed evidence to support the theory that the employer mandate under the Affordable Care Act (ACA) has contributed to the elevated level of involuntary part-time work.
Our estimates of the effect by industry do show signs of an effect, particularly among the sectors that had the greatest gaps in required health insurance coverage prior to implementation of the mandate, but the relationship is weak.
It is possible that the level of involuntary part-time workers could be a few hundred thousand higher than it would be otherwise as a result of the mandate, which is a small share of the 6.4 million workers employed part-time involuntarily, but potentially a much larger share of the ‘underemployment gap’.
This post was published at Zero Hedge on Jun 8, 2016.