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

41 Pages Posted: 13 Mar 2018 Last revised: 27 Aug 2018

See all articles by Erkmen Giray Aslim

Erkmen Giray Aslim

Texas A&M University - Private Enterprise Research Center

Date Written: August 24, 2018

Abstract

This paper investigates the effect of the Affordable Care Act's (ACA) Medicaid expansion on the retirement decision of low-educated adults aged 55-64. Using data from the American Community Survey, I employ a difference-in-differences strategy that exploits the timing and expansion decisions of states for adults without dependent children ("childless adults"). I find that the expansions increase Medicaid enrollment for both men and women. The estimates also suggest that the expansions and Medicaid enrollment 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.

Keywords: Medicaid, Retirement, Affordable Care Act, Job Lock

JEL Classification: I18, J18, J26

Suggested Citation

Aslim, Erkmen Giray, The Relationship Between Health Insurance and Early Retirement: Evidence from the Affordable Care Act (August 24, 2018). Available at SSRN: https://ssrn.com/abstract=3139829 or http://dx.doi.org/10.2139/ssrn.3139829

Erkmen Giray Aslim (Contact Author)

Texas A&M University - Private Enterprise Research Center ( email )

College Station, TX
United States

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