The Effect of Public Insurance Coverage for Childless Adults on Labor Supply

Dague, Laura; DeLeire, Thomas; Leininger, Lindsey

doi:10.1257/pol.20150059

Cited by 46 publications

(28 citation statements)

References 57 publications

(51 reference statements)

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“…Also the outcome of different policies: for example, the impact of minimum wage polices (Anh et al, 2011) and pension policies (Andersen and Bhattacharya 2013) have been conditioned on endogenous labor supply. Finally, labor supply itself has been the variable of interest and the effect of fertility (Fang et al 2013), child's health (Burton et al 2017), child's disability (Zhu 2016), informal caregiving (Wang and Zhang 2017), health (Trevisan and Zantomio 2016;Goryakin and Suhrcke 2017;Schurer 2017), and health policy (Kaestner et al 2017;Dague et al 2017) on labor market participation has been examined.…”

Section: Literature Reviewmentioning

confidence: 99%

Racial Earnings Disparities with Endogenous Labor Market Participation

Lahiri

2018

J Econ Race Policy

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This paper examines racial disparity in wage income earnings in the USA across different quantiles, after accounting for the endogeneity of labor market engagement which is captured using the continuous variable: annual number of weeks worked. Controlling for this endogeneity is important because changes in income earned would affect the labor supply, while on the labor demand side any pressures that cause racial disparity is likely to affect both hiring and pay decisions. State-sector level averages for weather-related work absences are used as instruments for number of weeks worked at the individual level and robustness of the results are verified. The instrumental variable conditional and generalized quantile regression techniques are used for analyzing the disparity. The results find that the racial disparity gets larger at the upper quantiles even when controlling for other covariates ensure that the individuals are similar in important attributes.

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Section: Literature Reviewmentioning

confidence: 99%

Racial Earnings Disparities with Endogenous Labor Market Participation

Lahiri

2018

J Econ Race Policy

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“…While Garthweight et al (2014) found that loss of Medicaid led to a 63 percent increase in employment in Tennessee, Dague et al (2014) found that Medicaid reduced employment by 5.5 percentage points (12 percent) and lowered quarterly earnings by $300 among Medicaid enrollees in Wisconsin. Dave, et al (2015) found that the increase in 20 percentage points in Medicaid eligibility among pregnant women and the associated crowd out of private coverage led to 11-13 percent decline in employment among pregnant women and 13-16 percent decline among unmarried pregnant women without a high school degree.…”

Section: The Previous Literaturementioning

confidence: 99%

Does Medicaid Generosity Affect Household Income?

Kumar¹

2017

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Almost all recent literature on Medicaid and labor supply has used Affordable Care Act (ACA)-induced Medicaid eligibility expansions in various states as natural experiments. Estimated effects on employment and earnings differ widely due to differences in the scope of eligibility expansion across states. Using a Regression Kink Design (RKD) framework, this paper takes a uniquely different approach to the identification of the effect of Medicaid generosity on household income. Both state-level data and March CPS data from 1980-2013 suggest that generous federal funding of state-level Medicaid costs have a modest negative effect on household income. The negative impact of Medicaid generosity on household income is more pronounced at the lower end of the household income distribution and on the income and earnings of female heads.

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“…The resulting scal externality from lower income tax revenue would further increase the total cost of the health insurance expansion. Existing evidence suggests that such labor market responses to subsidized health insurance coverage may be substantial (Garthwaite, Gross and Notowidigdo, 2014;Dague et al 2017 for Medicaid in Oregon, and about 5 times that for the low-income health insurance exchanges in Massachusetts. Even with log utility, social welfare would be 2.5 times recipient willingness to pay for Oregon Medicaid and 1.7 times recipient value for Massachusetts' health insurance.…”

Section: Distributional Analysismentioning

confidence: 99%

What Does (Formal) Health Insurance Do, and For Whom?

Finkelstein¹,

Mahoney²,

Notowidigdo³

2017

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Health insurance confers benefits to the previously uninsured, including improvements in health, reductions in out-of-pocket spending, and reduced medical debt. But because the nominally uninsured pay only a small share of their medical expenses, health insurance also provides substantial transfers to non-recipient parties who would otherwise bear the costs of providing uncompensated care to the uninsured. The prevalence of uncompensated care helps explain the limited take-up of heavily-subsidized public health insurance and the evidence that many recipients value formal health insurance at substantially less than the cost to insurers of providing that coverage. The distributional implications of public subsidies for health insurance depend critically on the ultimate economic incidence of the transfers they deliver to providers of uncompensated care. Health insurance confers benets to the previously uninsured, including improvements in health, reductions in out-of-pocket spending, and reduced medical debt. But because the nominally uninsured pay only a small share of their medical expenses, health insurance also provides substantial transfers to non-recipient parties who would otherwise bear the costs of providing uncompensated care to the uninsured. The prevalence of uncompensated care helps explain the limited take-up of heavily-subsidized public health insurance and the evidence that many recipients value formal health insurance at substantially less than the cost to insurers of providing that coverage. The distributional implications of public subsidies for health insurance depend critically on the ultimate economic incidence of the transfers they deliver to providers of uncompensated care.

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The Effect of Public Insurance Coverage for Childless Adults on Labor Supply

Cited by 46 publications

References 57 publications

Racial Earnings Disparities with Endogenous Labor Market Participation

Racial Earnings Disparities with Endogenous Labor Market Participation

Does Medicaid Generosity Affect Household Income?

What Does (Formal) Health Insurance Do, and For Whom?

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