×
Pohl, R. Vincent

Medicaid and the labor supply of single mothers: implications for health care reform. (English) Zbl 1417.91318

Int. Econ. Rev. 59, No. 3, 1283-1313 (2018).
Summary: The Medicaid expansions and health insurance subsidies of the Affordable Care Act (ACA) change work incentives for single mothers. To evaluate the employment effects of these policies ex ante, I estimate a model of labor supply and health insurance choice exploiting variation in pre-ACA Medicaid policies. Simulations show that single mothers increase their labor supply at the extensive and intensive margin by 12% and 7%, respectively, uninsurance rates decline by up to 40%, and an average family’s welfare improves by 1,600 dollars per year. Health insurance subsidies and not Medicaid expansions mostly drive these effects.

MSC:

91B40 Labor market, contracts (MSC2010)
91B30 Risk theory, insurance (MSC2010)

Keywords:

medicaid expansions; health insurance subsidies; Affordable Care Act (ACA); labor supply; single mothers
Cite Review PDF
Full Text: DOI Link

References:

[1] Aizawa, N., and H.Fang, “Equilibrium Labor Market Search and Health Insurance Reform,” NBER Working Paper 18698, 2013.
[2] Baicker, K., A.Finkelstein, J.Song, and S.Taubman, “The Impact of Medicaid on Labor Market Activity and Program Participation: Evidence from the Oregon Health Insurance Experiment,” American Economic Review104 (May 2014), 322-8.
[3] Blank, R. M., “The Effect of Medical Need and Medicaid on AFDC Participation,” Journal of Human Resources24 (1989), 54-87.
[4] Blundell, R., M. CostaDias, C.Meghir, and J.Shaw, “Female Labor Supply, Human Capital, and Welfare Reform,” Econometrica84 (2016), 1705-53. · Zbl 1420.91179
[5] Brügemann, B., and I.Manovskii, “Fragility: A Quantitative Analysis of the US Health Insurance System,” IMDEA Working Paper, 2010.
[6] Buchmueller, T. C., and R. G.Valletta, “The Effect of Health Insurance on Married Female Labor Supply,” Journal of Human Resources34 (1999), 42-70.
[7] Cohen Ross, D., and C.Marks, “Challenges of Providing Health Coverage for Children and Parents in a Recession: A 50 State Update on Eligibility Rules, Enrollment and Renewal Procedures, and Cost‐sharing Practices in Medicaid and SCHIP in 2009,” February 2009, http://www.kff.org/medicaid/upload/7855.pdf.
[8] Currie, J., and B. C.Madrian, “Health, Health Insurance and the Labor Market,” in O. C.Ashenfelter (ed.) and D.Card (ed.), eds., Handbook of Labor Economics (Amsterdam/New York: Elsevier Science, 1999), 3309-416.
[9] Dahl, G. B., “Mobility and the Return to Education: Testing a Roy Model with Multiple Markets,” Econometrica70 (November 2002), 2367-420. · Zbl 1137.91560
[10] Dave, D., S. L.Decker, R.Kaestner, and K. I.Simon, “The Effect of Medicaid Expansions in the Late 1980s and Early 1990s on the Labor Supply of Pregnant Women,” American Journal of Health Economics1 (2015), 165-93.
[11] Decker, S. L., and F. W.Selck, “The Effect of the Original Introduction of Medicaid on Welfare Participation and Female Labor Supply,” Review of Economics of the Household10 (2012), 541-56.
[12] DeLeire, T., L. M.Lopoo, and K. I.Simon, “Medicaid Expansions and Fertility in the United States,” NBER Working Paper 12907, 2007.
[13] Garthwaite, C., T.Gross, and M. J.Notowidigdo, “Public Health Insurance, Labor Supply, and Employment Lock,” Quarterly Journal of Economics129 (2014), 653-96.
[14] Gruber, J., “Health Insurance and the Labor Market,” in A. J.Culyer (ed.) and J. P.Newhouse (ed.), eds., Handbook of Health Economics (Amsterdam/New York: Elsevier Science, 2000), 645-706.
[15] Gruber, J., and B. C.Madrian, “Health Insurance, Labor Supply, and Job Mobility: A Critical Review of the Literature,” NBER Working Paper 8817, 2002.
[16] Ham, J. C., and L. D.Shore‐Sheppard, “Did Expanding Medicaid Affect Welfare Participation?” Industrial and Labor Relations Review58 (2005), 452-70.
[17] Hamersma, S., “The Effects of Medicaid Earnings Limits on Earnings Growth among Poor Workers,” B.E. Journal of Economic Analysis & Policy13 (2013), 887-919.
[18] Hamersma, S., and M.Kim, “The Effect of Parental Medicaid Expansions on Job Mobility,” Journal of Health Economics28 (2009), 761-70.
[19] Hamersma, S., and M.Kim, “Participation and Crowd Out: Assessing the Effects of Parental Medicaid Expansions,” Journal of Health Economics32 (2013), 160-71.
[20] Heckman, J., and B.Singer, “A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data,” Econometrica52 (1984), 271-320. · Zbl 0547.62077
[21] Herriges, J. A., and C. L.Kling, “Nonlinear Income Effects in Random Utility Models,” Review of Economics and Statistics81 (March 1999), 62-72.
[22] Iglehart, J. K., “The American Health Care System—Medicaid,” New England Journal of Medicine340 (1999), 403-8.
[23] Kaiser Family Foundation, “Medicaid and Children”s Health Insurance Program Provisions in the New Health Reform Law,” http://www.kff.org/healthreform/upload/7952‐03.pdf, 2010.
[24] Keane, M. P., “Labor Supply and Taxes: A Survey,” Journal of Economic Literature49 (2011), 961-1075.
[25] Keane, M. P., and R.Moffitt, “A Structural Model of Multiple Welfare Program Participation and Labor Supply,” International Economic Review39 (August 1998), 553-89.
[26] Kennan, J., and J. R.Walker, “Wages, Welfare Benefits and Migration,” Journal of Econometrics156 (May 2010), 229-38. · Zbl 1431.62637
[27] Kolstad, J. T., and A. E.Kowalski, “Mandate‐Based Health Reform and the Labor Market: Evidence from the Massachusetts Reform,” Journal of Health Economics47 (2016), 81-106.
[28] Meyer, B. D., and D. T.Rosenbaum, “Medicaid, Private Health Insurance, and the Labor Supply of Single Mothers,” working paper, Northwestern University, 2000.
[29] Meyer, B. D., and D. T.Rosenbaum, “Welfare, the Earned Income Tax Credit, and the Labor Supply of Single Mothers,” Quarterly Journal of Economics116 (2001), 1063-114. · Zbl 0989.91097
[30] Moffitt, R., “An Economic Model of Welfare Stigma,” American Economic Review73 (1983), 1023-35.
[31] Moffitt, R., and B.Wolfe, “The Effect of the Medicaid Program on Welfare Participation and Labor Supply,” Review of Economics and Statistics74 (November 1992), 615-26.
[32] Mullahy, J., “Much Ado about Two: Reconsidering Retransformation and the Two‐Part Model in Health Econometrics,” Journal of Health Economics17 (1998), 247-81.
[33] Rosenbaum, S., “Medicaid and National Health Care Reform,” New England Journal of Medicine361 (November 2009), 2009-12.
[34] Shore‐Sheppard, L. D., “Stemming the Tide? The Effect of Expanding Medicaid Eligibility on Health Insurance Coverage,” B.E. Journal of Economic Analysis & Policy8 (2008), 1-35.
[35] Strumpf, E., “Medicaid”s Effect on Single Women’s Labor Supply: Evidence from the Introduction of Medicaid,” Journal of Health Economics30 (May 2011), 531-48.
[36] Stuber, J., and K.Kronebusch, “Stigma and Other Determinants of Participation in TANF and Medicaid,” Journal of Policy Analysis and Management23 (2004), 509-30.
[37] U.S. Census Bureau, “America”s Families and Living Arrangements: 2013: Family Households,” http://www.census.gov/hhes/families/data/cps2013F.html, 2013.
[38] Walker, J., M.Ben‐Akiva, and D.Bolduc, “Identification of Parameters in Normal Error Component Logit‐Mixture (NECLM) Models,” Journal of Applied Econometrics22 (2007), 1095-125.
[39] Winkler, A. E., “The Incentive Effects of Medicaid on Women”s Labor Supply,” Journal of Human Resources26 (1991), 308-37.
[40] Yelowitz, A. S., “The Medicaid Notch, Labor Supply, and Welfare Participation: Evidence from Eligibility Expansions,” Quarterly Journal of Economics110 (1995), 909-39.
This reference list is based on information provided by the publisher or from digital mathematics libraries. Its items are heuristically matched to zbMATH identifiers and may contain data conversion errors. In some cases that data have been complemented/enhanced by data from zbMATH Open. This attempts to reflect the references listed in the original paper as accurately as possible without claiming completeness or a perfect matching.