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

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  • Erkmen Giray Aslim

    (Texas A&M University)

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.

Suggested Citation

  • Erkmen Giray Aslim, 2019. "The Relationship Between Health Insurance and Early Retirement: Evidence from the Affordable Care Act," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 45(1), pages 112-140, January.
    • Handle: RePEc:pal:easeco:v:45:y:2019:i:1:d:10.1057_s41302-018-0115-8
    DOI: 10.1057/s41302-018-0115-8
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    Cited by:

    1. Erkmen G. Aslim & Murat C. Mungan & Carlos I. Navarro & Han Yu, 2022. "The Effect of Public Health Insurance on Criminal Recidivism," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 41(1), pages 45-91, January.
    2. Mark Duggan & Gopi Shah Goda & Gina Li, 2021. "The Effects of the Affordable Care Act on the Near Elderly: Evidence for Health Insurance Coverage and Labor Market Outcomes," Tax Policy and the Economy, University of Chicago Press, vol. 35(1), pages 179-223.
    3. Isaac, Elliott & Jiang, Haibin, 2022. "Tax-Based Marriage Incentives in the Affordable Care Act," IZA Discussion Papers 15331, Institute of Labor Economics (IZA).
    4. Erkmen G. Aslim & Murat C. Mungan & Han Yu, 2024. "A welfare analysis of Medicaid and recidivism," Health Economics, John Wiley & Sons, Ltd., vol. 33(11), pages 2463-2507, November.
    5. Padmaja Ayyagari, 2019. "Health Insurance and Early Retirement Plans: Evidence from the Affordable Care Act," American Journal of Health Economics, University of Chicago Press, vol. 5(4), pages 533-560, Fall.
    6. Lingchen Liu & Renji Sun & Yan Gu & Kung Cheng Ho, 2020. "The Effect of China’s Health Insurance on the Labor Supply of Middle-aged and Elderly Farmers," IJERPH, MDPI, vol. 17(18), pages 1-23, September.
    7. Aslim, Erkmen Giray, 2022. "Public health insurance and employment transitions," Labour Economics, Elsevier, vol. 75(C).
    8. Kevin Wood, 2019. "Health insurance reform and retirement: Evidence from the Affordable Care Act," Health Economics, John Wiley & Sons, Ltd., vol. 28(12), pages 1462-1475, December.
    9. Sezen O. Onal, 2023. "Does the ACA Medicaid Expansion Encourage Labor Market Exits of Older Workers?," Journal of Labor Research, Springer, vol. 44(1), pages 56-93, June.
    10. James Bailey & Gregory Colman & Dhaval Dave, 2022. "The Evolution of Job Lock in the U.S.: Evidence from the Affordable Care Act," JRFM, MDPI, vol. 15(7), pages 1-13, July.

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    More about this item

    Keywords

    Medicaid; Retirement; Affordable Care Act; Job lock;
    All these keywords.

    JEL classification:

    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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