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The Relationship Between Health Insurance and Early Retirement: Evidence from the Affordable Care Act

Erkmen Aslim ()

Eastern Economic Journal, 2019, vol. 45, issue 1, No 6, 112-140

Abstract: Abstract This paper investigates the effect of the Affordable Care Act’s Medicaid expansion on the retirement decision of low-educated adults aged 55–64. I employ a difference-in-differences strategy that exploits the timing and expansion decisions of states for adults without dependent children. I find that the expansions increase Medicaid enrollment for both men and women. The estimates also suggest that the expansions result in women retiring early, whereas there is no significant change in the retirement behavior of men. These findings imply that the effect of health insurance on women’s retirement decisions may depend on men’s labor market responses to health insurance.

Keywords: Medicaid; Retirement; Affordable Care Act; Job lock (search for similar items in EconPapers)
JEL-codes: I13 I18 J26 (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1057/s41302-018-0115-8

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Eastern Economic Journal is currently edited by Allan Zebedee and Cynthia Bansak

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Handle: RePEc:pal:easeco:v:45:y:2019:i:1:d:10.1057_s41302-018-0115-8