The Evidence on Early Retirement After the Affordable Care Act's Medicaid Expansion
27 Pages Posted: 13 Mar 2018
Date Written: March 13, 2018
This paper investigates the effect of the Affordable Care Act’s (ACA) Medicaid expansion on the retirement decision of low-income adults aged 55 to 64 years. The study focuses particularly on adults without dependent children ("childless adults"), a group that gained access to Medicaid coverage after the ACA. Using an instrumental variables (IV) model that exploits both the expansion decision of states and timing, I find that the probability of retirement increases by 14.8 percentage points for childless adults with Medicaid. The probability of retirement increases by 13.4 and 16.1 percentage points for men and women, respectively.
Keywords: Medicaid, Retirement, Affordable Care Act, Job Lock
JEL Classification: I18, J18, J26
Suggested Citation: Suggested Citation