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The Impact of Health Insurance on Stockholding: A Regression Discontinuity Approach

Dimitris Christelis (), Dimitris Georgarakos () and Anna Sanz-de-Galdeano

No 8635, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Using data from the US Health and Retirement Study, we study the causal effect of increased health insurance coverage through Medicare and the associated reduction in health-related background risk on financial risk-taking. Given the onset of Medicare at age 65, we identify our effect of interest using a regression discontinuity approach. We find that getting Medicare coverage induces stockholding for those with at least some college education, but not for their less-educated counterparts. Hence, our results indicate that a reduction in background risk induces financial risk-taking in individuals for whom informational and pecuniary stock market participation costs are relatively low.

Keywords: health insurance; Medicare; stockholding; regression discontinuity; household finance (search for similar items in EconPapers)
JEL-codes: D14 I13 G11 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-age, nep-hea and nep-ias
Date: 2014-11
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Working Paper: The Impact of Health Insurance on Stockholding: A Regression Discontinuity Approach (2014) Downloads
Working Paper: The impact of health insurance on stockholding: A regression discontinuity approach (2014) Downloads
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