Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/84150 
Year of Publication: 
2013
Series/Report no.: 
CESifo Working Paper No. 4415
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
Despite the widespread provision of retiree health insurance for public sector workers, little attention has been paid to its effects on employee retirement. This is in contrast to the large literature on health-insurance-induced “job-lock” in the private sector. I use the introduction of retiree health insurance for public school employees in combination with administrative data on their retirement to identify the effects of retiree health insurance. As expected, the availability of retiree health insurance for older workers allows employees to retire earlier. These behavioral changes have budgetary implications, likely making the programs self-financing rather than costly to taxpayers.
Subjects: 
retirement
health insurance
public sector employment
teacher labor supply
JEL: 
J26
H75
I28
I21
Document Type: 
Working Paper
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