Retiree Health Insurance for Public School Employees: Does it Affect Retirement?
AbstractDespite the widespread provision of retiree health insurance for public sector workers, little attention has been paid to its effects on employee retirement. This is in contrast to the large literature on health-insurance-induced “job-lock” in the private sector. I use the introduction of retiree health insurance for public school employees in combination with administrative data on their retirement to identify the effects of retiree health insurance. As expected, the availability of retiree health insurance for older workers allows employees to retire earlier. These behavioral changes have budgetary implications, likely making the programs self-financing rather than costly to taxpayers.
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Date of creation: Oct 2013
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Other versions of this item:
- Maria D. Fitzpatrick, 2013. "Retiree Health Insurance for Public School Employees: Does it Affect Retirement?," CESifo Working Paper Series 4415, CESifo Group Munich.
- H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
- I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
- J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
This paper has been announced in the following NEP Reports:
- NEP-AGE-2013-10-18 (Economics of Ageing)
- NEP-ALL-2013-10-18 (All new papers)
- NEP-HEA-2013-10-18 (Health Economics)
- NEP-IAS-2013-10-18 (Insurance Economics)
- NEP-LAB-2013-10-18 (Labour Economics)
- NEP-LMA-2013-10-18 (Labor Markets - Supply, Demand, & Wages)
- NEP-NPS-2013-10-18 (Nonprofit & Public Sector)
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