Does medicaid generosity affect household income?

Anil Kumar

Economic Modelling, 2020, vol. 92, issue C, 239-256

Abstract: 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 and are potentially subject to biases due to policy endogeneity. Using a Regression Kink Design (RKD) framework, this paper takes a new approach to the identification of the effect of Medicaid generosity on household income. Both state-level data and March CPS data from 1980 to 2013 suggest that generous federal funding of state-level Medicaid costs have a 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.

Keywords: Medicaid and household income; Regression kink design (search for similar items in EconPapers)
JEL-codes: C31 E62 H31 I38 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Working Paper: Does Medicaid Generosity Affect Household Income? (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:92:y:2020:i:c:p:239-256

DOI: 10.1016/j.econmod.2020.01.004

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