The Influence of Retiree Health Benefits on Retirement Patterns
AbstractWe estimate the effect of employer offers of retiree health benefits (RHBs) on the timing of retirement using a sample of Health and Retirement Study (HRS) men observed over a period of up to 12 years. We hypothesize that the effect of RHBs differs for workers of different ages—a hypothesis we can test now that the main HRS cohort has aged sufficiently. We apply three wellknown panel data estimators and find that, for men in their 50s, RHBs have little or no effect on retirement decisions; however, a substantial effect emerges for men in their early 60s. We use simulations to illustrate how RHBs alter retirement patterns.
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Bibliographic InfoPaper provided by W.E. Upjohn Institute for Employment Research in its series Upjohn Working Papers and Journal Articles with number 10-163.
Date of creation: Feb 2010
Date of revision:
Retirement; Health Insurance; Employee Benefits; Panel Data;
Find related papers by JEL classification:
- J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
- D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
This paper has been announced in the following NEP Reports:
- NEP-AGE-2010-04-17 (Economics of Ageing)
- NEP-ALL-2010-04-17 (All new papers)
- NEP-HEA-2010-04-17 (Health Economics)
- NEP-IAS-2010-04-17 (Insurance Economics)
- NEP-LAB-2010-04-17 (Labour Economics)
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