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Retiree Health Insurance for Public School Employees: Does it Affect Retirement?

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  • Maria D. Fitzpatrick

Abstract

Despite 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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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 19524.

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Date of creation: Oct 2013
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Handle: RePEc:nbr:nberwo:19524

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Cited by:
  1. Robert Clark & Melinda Morrill, 2013. "Increasing Work Life: The Role Of The Employer," Discussion Papers 13-016, Stanford Institute for Economic Policy Research.

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