Does Health Reform Lead to an Increase in Early Retirement? Evidence from Massachusetts

Bradley Heim and LeeKai Lin

ILR Review, 2017, vol. 70, issue 3, 704-732

Abstract: This article estimates the impact of the 2006 Massachusetts health reform on the decision of individuals to retire early. Using data from the American Community Survey that spans 2004 through 2012, the authors estimate difference-in-differences models for retirement using individuals from other northeastern states as the control group. The estimates suggest that the reform led women to increase early retirement from full-time work by 1.1 percentage points (from a base of 4.8%) and to increase part-time work by 1.1 percentage points (from a base of 30%). Though no significant effects were found for men overall, the estimates imply that the reform led to an increase in retirement and part-time work among lower-income men.

Keywords: retirement; health insurance; benefits; policy analysis; labor force participation (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:sae:ilrrev:v:70:y:2017:i:3:p:704-732

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