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How Does Retiree Health Insurance Influence Public Sector Employee Saving?

Listed author(s):
  • Robert Clark
  • Olivia S. Mitchell

Economic theory predicts that employer-provided retiree health insurance benefits crowd-out household wealth accumulation. Nevertheless, there is little research on the impacts of retiree health insurance on wealth accruals, so this paper utilizes a unique data file on three baseline cohorts from the Health and Retirement Study to explore how employer-provided retiree health insurance may influence net household wealth among public sector employees, where retiree healthcare benefits are still quite prevalent. We find that most full-time public sector employees who anticipate receiving employer-provided health insurance coverage in retirement save less than their private sector uncovered counterparts.

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File URL: http://www.nber.org/papers/w19511.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 19511.

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Date of creation: Oct 2013
Publication status: published as How Does Retiree Health Insurance Influence Public Sector Employee Saving? , Robert L. Clark, Olivia S. Mitchell. in State and Local Health Plans for Active and Retired Public Employees , Clark and Newhouse. 2014
Handle: RePEc:nbr:nberwo:19511
Note: AG HE LS PE
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