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

  • Erkmen Giray Aslim
Original Article

Abstract

This paper investigates the effect of the Affordable Care Act’s Medicaid expansion on the retirement decision of low-educated adults aged 55–64. I employ a difference-in-differences strategy that exploits the timing and expansion decisions of states for adults without dependent children. I find that the expansions increase Medicaid enrollment for both men and women. The estimates also suggest that the expansions 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

I13 I18 J26 

Notes

Acknowledgements

I would like to thank Dhaval Dave (editor) and two anonymous referees for their very helpful suggestions. I would also like to thank Shin-Yi Chou, Muzhe Yang, Seth Richards-Shubik, Karen S. Conway, Naim Chy, Liqun Liu, Ashley Bullock, Chelsea Temple, and the participants at the 2018 Eastern Economic Association meeting. All errors are mine.

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Copyright information

© EEA 2018

Authors and Affiliations

  1. 1.Private Enterprise Research CenterTexas A&M UniversityCollege StationUSA

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