DO ADULT CHILDREN MATTER?—THE EFFECTS OF NATIONAL HEALTH INSURANCE ON RETIREMENT BEHAVIOR: EVIDENCE FROM TAIWAN

Hsin‐ling Hsieh

Contemporary Economic Policy, 2008, vol. 26, issue 2, 317-334

Abstract: This paper examines the effect of the 1995 implementation of National Health Insurance (NHI) on retirement behavior in Taiwan. The identification strategy is based on the fact that, in Taiwan, adult children offer significant insurance to elderly parents. The results suggest that NHI had significant effects on retirement among the elderly lacking an adequate traditional “safety net.” NHI raised the conditional probability that a male, private sector worker over the age of 51 would retire by more than 60%. However, men with a stronger safety net in the form of adult sons were less responsive to NHI. (JEL I18, J14, J26)

Date: 2008
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