The Impact of Massachusetts Health Insurance Reform on Labor Mobility and Retirement

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This project will provide insight on the possible impact of the Patient Protection and Affordable Care Act (ACA) on the labor market by examining the case of Massachusetts. In 2006, Massachusetts passed landmark health insurance legislation – comprised of non- and small-group market reforms, individual mandates, and pay-or-play mandates for employer-sponsored health insurance – which became the model for the ACA. Using the Continuous Work History Sample (CWHS), this project will examine how access to affordable health insurance has impacted job turnover rates and the retirement decision in Massachusetts. It will explore the ability to measure differential effects by age and income, as well as try to disentangle the effects of the employer mandate and the individual mandate by using individuals who cross state lines between home and work. This analysis will aid the Social Security Administration in assessing the impact of the ACA on both payroll tax revenues and changes in the retirement hazard.