Love, Toil, and Health Insurance: Why American Husbands Retire When They Do
AbstractThe provision of health insurance has previously been shown to be an important determinant of retirement timing among older Americans, but the existing literature has largely ignored some aspects of the inter-spousal dependence of health insurance benefits. Specifically, the literature examines only how retirement may affect the health insurance available to the potential retiree but not how it might affect a spouse's options. Using data from the Health and Retirement Study, I find that the impact a husband's retirement might have on a wife's health insurance options has a statistically significant impact on a husband's rate of retirement that is independent of considerations of his own health insurance options. In households where the wife is the only one at risk of losing affordable health insurance if the husband retires, the husband is 30 percent less likely to retire than if neither spouse is at risk (a five percentage point decrease in the retirement rate). Based on these findings, prior research is missing one avenue that changes to the Medicare eligibility age and health insurance policy changes through the Affordable Care Act might impact the labor supply of older workers.
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Bibliographic InfoPaper provided by College of the Holy Cross, Department of Economics in its series Working Papers with number 1115.
Length: 49 pages
Date of creation: Jun 2013
Date of revision:
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Retirement; health insurance; household decision-making;
Find related papers by JEL classification:
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
- J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
- J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
- J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
This paper has been announced in the following NEP Reports:
- NEP-AGE-2012-03-08 (Economics of Ageing)
- NEP-ALL-2012-03-08 (All new papers)
- NEP-DEM-2012-03-08 (Demographic Economics)
- NEP-HEA-2012-03-08 (Health Economics)
- NEP-IAS-2012-03-08 (Insurance Economics)
- NEP-LAB-2012-03-08 (Labour Economics)
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