The effect of the original introduction of Medicaid on welfare participation and female labor supply

Decker, Sandra L.; Selck, Frederic

doi:10.1007/s11150-011-9132-7

Cited by 22 publications

(19 citation statements)

References 17 publications

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“…The PSID has also tracked AFDC participation since 1968, but we chose not to examine AFDC participants directly because AFDC participation decisions are clearly endogenous and because the increase in AFDC participation after the introduction of Medicaid (Decker and Selk, 2011) could contribute to compositional biases. In section 4.2 we examine a triple-difference specification that approximates the effect of the treatment-on-the-treated without relying directly on indicators of AFDC participation.…”

Section: Methodsmentioning

confidence: 99%

The long-term impacts of Medicaid exposure in early childhood: Evidence from the program's origin

Boudreaux

Golberstein

McAlpine

2016

Journal of Health Economics

101

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This paper examines the long-term impact of exposure to Medicaid in early childhood on adult health and economic status. The staggered timing of Medicaid's adoption across the states created meaningful variation in cumulative exposure to Medicaid for birth cohorts that are now in adulthood. Analyses of the Panel Study of Income Dynamics suggest exposure to Medicaid in early childhood (age 0-5) is associated with statistically significant and meaningful improvements in adult health (age 25-54), and this effect is only seen in subgroups targeted by the program. Results for economic outcomes are imprecise and we are unable to come to definitive conclusions. Using separate data we find evidence of two mechanisms that could plausibly link Medicaid's introduction to long-term outcomes: contemporaneous increases in health services utilization for children and reductions in family medical debt.

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Section: Methodsmentioning

confidence: 99%

The long-term impacts of Medicaid exposure in early childhood: Evidence from the program's origin

Boudreaux

Golberstein

McAlpine

2016

Journal of Health Economics

101

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“…Yelowitz () exploits the delinking of Medicaid from AFDC for children in the late 1980s and finds that this policy had a positive effect on labor force participation of mothers. Decker and Selck () and Strumpf () examine the effects of the introduction of the Medicaid program in the late 1960s and early 1970s on labor force participation; both studies find no effect. Dave et al.…”

Section: Related Literaturementioning

confidence: 99%

“…Overall, the literature based on pre‐1996 data provides mixed evidence on the effects of Medicaid on labor supply. However, there is evidence that the decision to participate in welfare programs was noticeably affected by the availability of health insurance (Ellwood and Adams, ; Moffitt and Wolfe, ; Decker and Selck, ).…”

Section: Related Literaturementioning

confidence: 99%

Work Incentives of Medicaid Beneficiaries and the Role of Asset Testing

Pashchenko

Porapakkarm

2017

Int Economic Review

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Having low income is one of the requirements for Medicaid eligibility. Given that earning ability is unobservable, once an individual with high labor income stops working it is impossible to distinguish him from those whose potential labor income is low. This can affect the ability of Medicaid to target the most disadvantaged people given that a large fraction of its beneficiaries do not work. In this paper we ask two questions: 1) Does Medicaid significantly distort work incentives? 2) Can the insurance-incentives trade-off of Medicaid be improved without changing the size of the redistribution in the economy? Our tool is a general equilibrium model with heterogeneous agents calibrated using the Medical Expenditure Panel Survey Dataset to match the life-cycle patterns of employment and insurance take-up behavior as well as the key aggregate statistics. We find that around 20% of Medicaid enrollees do not work in order to be eligible. These distortions are costly for the economy: if Medicaid eligibility could be linked to (unobservable) productivity the resulting ex-ante welfare gains are equivalent to 1.5% of the annual consumption. We show that asset testing can achieve a similar outcome but only if asset limits are allowed to be different for workers and non-workers.

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“…The existing literature provides mixed evidence for the effects of Medicaid on the labor supply of single mothers. Strumpf () and Decker and Selck () use variation generated by states introducing Medicaid in the 1960s and early 1970s and find no impact on labor force participation. Using data from the 1980s, Blank () and Winkler () find only weak effects.…”

Section: Introductionmentioning

confidence: 99%

Medicaid and the Labor Supply of Single Mothers: Implications for Health Care Reform

Pohl

2018

Int Economic Review

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The effect of the original introduction of Medicaid on welfare participation and female labor supply

Cited by 22 publications

References 17 publications

The long-term impacts of Medicaid exposure in early childhood: Evidence from the program's origin

The long-term impacts of Medicaid exposure in early childhood: Evidence from the program's origin

Work Incentives of Medicaid Beneficiaries and the Role of Asset Testing

Medicaid and the Labor Supply of Single Mothers: Implications for Health Care Reform

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