The Effect of the Affordable Care Act on the Labor Supply, Savings, and Social Security of Older Americans
59 Pages Posted: 3 Feb 2017
Date Written: October 1, 2016
This paper assesses the effect of the Affordable Care Act (ACA) on the labor supply of Americans ages 50 and older. Using data from the Health and Retirement Study and the Medical Expenditure Panel Survey, we estimate a dynamic programming model of retirement that accounts for both saving and uncertain medical expenses. Importantly, we model the two key channels by which health insurance rates are predicted to change: the Medicaid expansion and the subsidized private exchanges.
Keywords: Affordable Care Act, labor supply, retirement model, insurance rates
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