Does the ACA Medicaid Expansion Encourage Labor Market Exits of Older Workers?

In this study, I examine the effects of the Affordable Care Act Medicaid expansion on the labor supply decisions of non-disabled, low-educated, childless adults ages 50-64. I employ a triple-differences (DDD) methodology, exploiting variation in individuals’ health insurance status and the expansion...

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Bibliographic Details
Published in:Journal of labor research 2023-06, Vol.44 (1-2), p.56-93
Main Author: Onal, Sezen O.
Format: Article
Language:English
Subjects:
Adults
Childlessness
Early retirement
Employees
Employers
Employment
Health care industry
Health care policy
Health insurance
Health insurance exchanges
Health status
Insurance coverage
Labor force
Labor market
Labor supply
Low income groups
Medicaid
Medicare
Older people
Older workers
Patient Protection & Affordable Care Act 2010-US
Public health
Public sector
Retirees
Retirement
Social Sciences
Tax credits
Work
Workers
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Summary:In this study, I examine the effects of the Affordable Care Act Medicaid expansion on the labor supply decisions of non-disabled, low-educated, childless adults ages 50-64. I employ a triple-differences (DDD) methodology, exploiting variation in individuals’ health insurance status and the expansion decisions of states. I find that with Medicaid expansion, insured workers without retirement health insurance (RHI) decreased full-time work by 7.06 percentage points relative to those with RHI and those without any employer-sponsored coverage at all. Among those no longer working full-time, 82 percent transitioned to complete retirement.
ISSN:0195-3613
1936-4768
DOI:10.1007/s12122-023-09342-9