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Job Lock: Evidence from a Regression Discontinuity Design

Author

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  • Fairlie, Robert
Abstract
Employer-provided health insurance may restrict job mobility, resulting in “job lock.” Previous research on job lock finds mixed results using several methodologies. We take a new approach to examine job-lock by exploiting the discontinuity created at age 65 through the qualification for Medicare. Using a novel procedure for identifying age in months from matched monthly CPS data and a relatively unexplored administration measure of job mobility, we compare job mobility among male workers in the months just prior to turning age 65 to job mobility in the months just after turning age 65. We find no evidence that job mobility increases at the age 65 threshold when Medicare eligibility starts. We also do not find evidence that other factors such as retirement, reduction in hours worked, social security eligibility, pension eligibility, and sample changes confound the results on job mobility in the month individuals turn 65.

Suggested Citation

  • Fairlie, Robert, 2014. "Job Lock: Evidence from a Regression Discontinuity Design," Santa Cruz Department of Economics, Working Paper Series qt4947535x, Department of Economics, UC Santa Cruz.
    • Handle: RePEc:cdl:ucscec:qt4947535x
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    References listed on IDEAS

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    Cited by:

    1. Zoltan Acs & Thomas Åstebro & David Audretsch & David T. Robinson, 2016. "Public policy to promote entrepreneurship: a call to arms," Small Business Economics, Springer, vol. 47(1), pages 35-51, June.
    2. Witman, Allison, 2015. "Public health insurance and disparate eligibility of spouses: The Medicare eligibility gap," Journal of Health Economics, Elsevier, vol. 40(C), pages 10-25.
    3. Candon, David, 2018. "The effect of cancer on the labor supply of employed men over the age of 65," Economics & Human Biology, Elsevier, vol. 31(C), pages 184-199.
    4. Tim Bersak, 2019. "Identification of Job Lock and Inefficient Labor Market Mobility," Southern Economic Journal, John Wiley & Sons, vol. 86(2), pages 530-547, October.
    5. Shi, Xuezhu, 2020. "Locked out? China’s health insurance scheme and internal migration," Labour Economics, Elsevier, vol. 67(C).
    6. Joern H. Block & Christian O. Fisch & Mirjam van Praag, 2017. "The Schumpeterian entrepreneur: a review of the empirical evidence on the antecedents, behaviour and consequences of innovative entrepreneurship," Industry and Innovation, Taylor & Francis Journals, vol. 24(1), pages 61-95, January.
    7. Jeffrey DeSimone, 2018. "Suicide And The Social Security Early Retirement Age," Contemporary Economic Policy, Western Economic Association International, vol. 36(3), pages 435-450, July.

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    More about this item

    Keywords

    Social and Behavioral Sciences; Job lock; health insurance; Medicare;
    All these keywords.

    JEL classification:

    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private

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