Using a Structural Retirement Model to Simulate the Effect of Changes to the OASDI and Medicare Programs



In this paper, we specify a dynamic programming model that addresses the interplay among health, financial resources, and the labor market behavior of men in the later part of their working lives. The model is estimated using data from the Health and Retirement Study. We use the model to simulate the impact on behavior of raising the normal retirement age, eliminating early retirement altogether and introducing universal health insurance.

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Paper ID

RB 2005-075

Publication Type

Research Brief

Publication Year