Welfare Reform, Labor Supply, and Health Insurance in the Immigrant Population

George Borjas ()

No 9781, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Although the 1996 welfare reform legislation limited the eligibility of immigrant households to receive assistance, many states chose to protect their immigrant populations by offering state-funded aid to these groups. I exploit these changes in eligibility rules to examine the link between the welfare cutbacks and health insurance coverage in the immigrant population. The data reveal that the cutbacks in the Medicaid program did not reduce health insurance coverage rates among targeted immigrants. The immigrants responded by increasing their labor supply, thereby raising the probability of being covered by employer-sponsored health insurance.

JEL-codes: I18 I38 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ltv
Date: 2003-06
Note: HE LS
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