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

28 Pages Posted: 19 Nov 2014  

Bradley Heim

Indiana University Bloomington - School of Public & Environmental Affairs (SPEA)

Lee-Kai Lin

Indiana University Bloomington - Department of Economics

Date Written: August 19, 2014

Abstract

This paper estimates whether the implementation of the 2006 Massachusetts health reform law affected the decision of individuals to retire early. Using data from the American Community Survey that spans 2002-2012, we estimate difference-in-differences models for retirement, in which individuals from Massachusetts form our treatment group and individuals from other Northeastern states form our treatment group. The estimates suggest that, in the full sample, the reform led to an approximately 0.6 percentage point increase in retirement from full-time work (from a base of 2.6%) though not from part-time work. However, the reform may have led to an increase in retirement from any job (part- or full-time) among lower income individuals.

Suggested Citation

Heim, Bradley and Lin, Lee-Kai, Does Health Reform Lead to an Increase in Early Retirement? Evidence from Massachusetts (August 19, 2014). Indiana University, Bloomington School of Public & Environmental Affairs Research Paper No. 2526615. Available at SSRN: https://ssrn.com/abstract=2526615 or http://dx.doi.org/10.2139/ssrn.2526615

Bradley Heim (Contact Author)

Indiana University Bloomington - School of Public & Environmental Affairs (SPEA) ( email )

1315 East Tenth Street
Bloomington, IN 47405
United States

Lee-Kai Lin

Indiana University Bloomington - Department of Economics ( email )

Wylie Hall
Bloomington, IN 47405-6620
United States

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