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Job Lock: Evidence from a Regression Discontinuity Design

  • Fairlie, Robert W.

    ()

    (University of California, Santa Cruz)

  • Kapur, Kanika

    ()

    (University College Dublin)

  • Gates, Susan

    ()

    (RAND)

Employer-provided health insurance may restrict job mobility, resulting in "job lock." Previous research on job lock finds mixed results using several methodologies. We take a new approach to examine job-lock by exploiting the discontinuity created at age 65 through the qualification for Medicare. Using a novel procedure for identifying age in months from matched monthly CPS data and a relatively unexplored administration measure of job mobility, we compare job mobility among male workers in the months just prior to turning age 65 to job mobility in the months just after turning age 65. We find no evidence that job mobility increases at the age 65 threshold when Medicare eligibility starts. We also do not find evidence that other factors such as retirement, reduction in hours worked, social security eligibility, pension eligibility, and sample changes confound the results on job mobility in the month individuals turn 65.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7785.

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Length: 65 pages
Date of creation: Nov 2013
Date of revision:
Handle: RePEc:iza:izadps:dp7785
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  1. Fairlie, Robert W. & Kapur, Kanika & Gates, Susan, 2010. "Is Employer-Based Health Insurance a Barrier to Entrepreneurship?," IZA Discussion Papers 5203, Institute for the Study of Labor (IZA).
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  20. Kevin T. Stroupe & Eleanor D. Kinney & Thomas J. Kniesner, 2000. "Chronic Illness and Health Insurance-Related Job Lock," Center for Policy Research Working Papers 19, Center for Policy Research, Maxwell School, Syracuse University.
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  23. Cynthia Bansak & Steven Raphael, 2008. "The State Children's Health Insurance Program and Job Mobility: Identifying Job Lock among Working Parents in Near-Poor Households," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 61(4), pages 564-579, July.
  24. Melissa Boyle & Joanna N. Lahey, 2008. "Health Insurance and the Labor Supply Decisions of Older Workers: Evidence from the U.S. Department of Veterans Affairs," Working Papers 0801, College of the Holy Cross, Department of Economics.
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  33. Anna Sanz-De-Galdeano, 2006. "Job-Lock and Public Policy: Clinton's Second Mandate," ILR Review, Cornell University, ILR School, vol. 59(3), pages 430-437, April.
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  35. Richard W. Johnson & Amy J. Davidoff & Kevin Perese, 2003. "Health insurance costs and early retirement decisions," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 56(4), pages 716-729, July.
  36. David Card & Carlos Dobkin & Nicole Maestas, 2005. "The Impact of Health Insurance Status on Treatment Intensity and Health Outcomes," Working Papers 505, RAND Corporation Publications Department.
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