Retiree Health Insurance for Public School Employees: Does it Affect Retirement?

39 Pages Posted: 3 Oct 2013

Multiple version iconThere are 2 versions of this paper

Date Written: September 30, 2013

Abstract

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.

Keywords: retirement, health insurance, public sector employment, teacher labor supply

JEL Classification: J260, H750, I280, I210

Suggested Citation

Fitzpatrick, Maria Donovan, Retiree Health Insurance for Public School Employees: Does it Affect Retirement? (September 30, 2013). CESifo Working Paper Series No. 4415, Available at SSRN: https://ssrn.com/abstract=2334725 or http://dx.doi.org/10.2139/ssrn.2334725

Maria Donovan Fitzpatrick (Contact Author)

Cornell University ( email )

Ithaca, NY
United States
607-255-1272 (Phone)

HOME PAGE: http://www.human.cornell.edu/bio.cfm?netid=mdf98

NBER ( email )

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