Jeffrey Rous wrote:
> When I was in grad school, my wife's health insurance policy through
> work allowed an employee to add a spouse for $1000 per year (I cannot
> remember the exact numbers, but these are close) or add a spouse and
> children for $2000 per year. And it didn't matter whether you had 1
> child or 10.
> Since she worked for UNC, I figured it was a political decision.

I'm pretty sure that it's not. My wife's private insurance works the same way. Unless regulations make the private sector copy the public sector.

> How can this be rational?

At least for male employees, it's plausible that those with more children are both older and therefore more experienced, and more responsible/stable holding age constant. A guy with five kids is going to be very concerned about remaining employed.

> -Jeffrey Rous

-- Prof. Bryan Caplan Department of Economics George Mason University [EMAIL PROTECTED]

              "The game of just supposing
               Is the sweetest game I know...

               And if the things we dream about
               Don't happen to be so,
               That's just an unimportant technicality."

Jerome Kern and Oscar Hammerstein, *Showboat*

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