This study analyzes the firm’s decision to offer and contribute to retiree health insurance. We apply a binomial probit model and an interval regression model to analyze the likelihood of offering and the proportion of costs contributed by the firm. Our findings indicate that while firm characteristics affect the probability that a firm offers retiree health insurance, financial performance and alternative insurance options significantly affect the firm’s generosity towards its cost. This study expands on previous research by including potentially important policy-related measures to the more limited set of firm and workforce characteristics that have been typically employed.

Others in Series

Working Paper

International Trade, Employment, and Earnings: Evidence from U.S. Rural Counties

May 2003

Author ROBIN LEICHENKO AND JULIE SILVA

Working Paper Number CES-03-12

Working Paper

Specialization, Firms, and Markets: The Division of Labor Within and Between Law Firms

May 2003

Author THOMAS N HUBBARD AND LUIS GARICANO

Working Paper Number CES-03-13

Working Paper

Regional Income Inequality and International Trade

July 2003

Author JULIE SILVA AND ROBIN LEICHENKO

Working Paper Number CES-03-15

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Center for Economic Studies (CES) Working Paper Series

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