Retiree Health Insurance for Public School Employees: Does it Affect Retirement?
Despite the widespread provision of retiree health insurance for public sector workers, little attention has been paid to its effects on employee retirement. This is in contrast to the large literature on health-insurance-induced "job-lock" in the private sector. I use the introduction of retiree health insurance for public school employees in combination with administrative data on their retirement to identify the effects of retiree health insurance. As expected, the availability of retiree health insurance for older workers allows employees to retire earlier. These behavioral changes have budgetary implications, likely making the programs self-financing rather than costly to taxpayers.
I would like to thank Michael Lovenheim, Susanna Loeb, Jordan Matsudaira, Melinda Morrill, Joseph Quinn and seminar participants at Cornell University, the NBER Conference on State and Local Health Plans for Active and Retired Public Employees and the CESifo Conference on the Economics of Education for helpful comments and suggestions. Funding from the National Institute on Aging, through Grant Number T32-AG000186 to the National Bureau of Economic Research, is gratefully acknowledged. All errors and omissions are my own. The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research.
Fitzpatrick, Maria D., 2014. "Retiree health insurance for public school employees: Does it affect retirement?," Journal of Health Economics, Elsevier, vol. 38(C), pages 88-98. citation courtesy of
Retiree Health Insurance for Public School Employees: Does It Affect Retirement?, Maria D. Fitzpatrick. in State and Local Health Plans for Active and Retired Public Employees, Clark and Newhouse. 2014