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

R. Vincent Pohl ()

No 15-222, Upjohn Working Papers from W.E. Upjohn Institute for Employment Research

Abstract: The Patient Protection and Affordable Care Act expands Medicaid and introduces health insurance subsidies, thereby changing work incentives for single mothers. To undertake an ex ante policy evaluation of the employment effects of the PPACA, I structurally estimate a model of labor supply and health insurance choice exploiting existing variation in Medicaid policies. Simulations show that single mothers increase their labor supply at the extensive and the intensive margin by six and five percent, respectively. The PPACA leads to crowding-out of employer-sponsored health insurance of about 40 percent and increases single mothers' welfare by about $190 per month.

Keywords: health care reform; Medicaid; labor supply; single mothers (search for similar items in EconPapers)
JEL-codes: I18 I3 J2 (search for similar items in EconPapers)
Date: 2014-05
New Economics Papers: this item is included in nep-hea and nep-ias
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Citations: View citations in EconPapers (18)

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Related works:
Journal Article: MEDICAID AND THE LABOR SUPPLY OF SINGLE MOTHERS: IMPLICATIONS FOR HEALTH CARE REFORM (2018)
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