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

  • Maria D. Fitzpatrick

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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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2013/wp-cesifo-2013-09/cesifo1_wp4415.pdf
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 4415.

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Date of creation: 2013
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Handle: RePEc:ces:ceswps:_4415
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  1. Gruber, Jonathan & Madrian, Brigitte C, 1995. "Health-Insurance Availability and the Retirement Decision," American Economic Review, American Economic Association, vol. 85(4), pages 938-48, September.
  2. John Rust & Christopher Phelan, 1997. "How Social Security and Medicare Affect Retirement Behavior in a World of Incomplete Markets," Econometrica, Econometric Society, vol. 65(4), pages 781-832, July.
  3. James Marton & Stephen A. Woodbury, 2013. "Retiree Health Benefits as Deferred Compensation," Public Finance Review, , vol. 41(1), pages 64-91, January.
  4. Nyce, Steven & Schieber, Sylvester J. & Shoven, John B. & Slavov, Sita Nataraj & Wise, David A., 2013. "Does retiree health insurance encourage early retirement?," Journal of Public Economics, Elsevier, vol. 104(C), pages 40-51.
  5. Christina Robinson & Robert Clark, 2010. "Retiree Health Insurance and Disengagement from a Career Job," Journal of Labor Research, Springer, vol. 31(3), pages 247-262, September.
  6. Norma B. Coe & Mashfiqur Khan & Matthew S. Rutledge, 2013. "Sticky Ages: Why Is Age 65 Still a Retirement Peak?," Working Papers, Center for Retirement Research at Boston College wp2013-2, Center for Retirement Research.
  7. Cory Koedel & Michael Podgursky, 2011. "Teacher Pension Systems, the Composition of the Teaching Workforce, and Teacher Quality," Working Papers 1109, Department of Economics, University of Missouri, revised 10 Apr 2012.
  8. Boyle, Melissa A. & Lahey, Joanna N., 2010. "Health insurance and the labor supply decisions of older workers: Evidence from a U.S. Department of Veterans Affairs expansion," Journal of Public Economics, Elsevier, vol. 94(7-8), pages 467-478, August.
  9. Djebbari, Habiba & Smith, Jeffrey A., 2008. "Heterogeneous Impacts in PROGRESA," IZA Discussion Papers 3362, Institute for the Study of Labor (IZA).
  10. John B. Shoven & Sita Slavov, 2013. "The Role of Retiree Health Insurance in the Early Retirement of Public Sector Employees," NBER Working Papers 19563, National Bureau of Economic Research, Inc.
  11. Lynn A. Karoly & Jeannette A. Rogowski, 1994. "The effect of access to post-retirement health insurance on the decision to retire early," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 48(1), pages 103-123, October.
  12. Cory Koedel & Jason A. Grissom & Shawn Ni & Michael Podgursky, 2011. "Pension-Induced Rigidities in the Labor Market for School Leaders," CESifo Working Paper Series 3605, CESifo Group Munich.
  13. repec:umc:wpaper:1310 is not listed on IDEAS
  14. Lynn A. Karoly & Jeannette A. Rogowski, 1994. "The Effect of Access to Post-Retirement Health Insurance on the Decision to Retire Early," ILR Review, Cornell University, ILR School, vol. 48(1), pages 103-123, October.
  15. Robert Novy-Marx & Joshua D. Rauh, 2009. "The Liabilities and Risks of State-Sponsored Pension Plans," Journal of Economic Perspectives, American Economic Association, vol. 23(4), pages 191-210, Fall.
  16. James Marton & Stephen A. Woodbury, 2012. "Retiree Health Benefits as Deferred Compensation: Evidence from the Health and Retirement Study," Upjohn Working Papers and Journal Articles 12-182, W.E. Upjohn Institute for Employment Research.
  17. Erin Strumpf, 2010. "Employer-sponsored health insurance for early retirees: impacts on retirement, health, and health care," International Journal of Health Care Finance and Economics, Springer, vol. 10(2), pages 105-147, June.
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