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The impact of expanding Medicaid on health insurance coverage and labor market outcomes

David Frisvold () and Younsoo Jung ()
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Younsoo Jung: University of Iowa

International Journal of Health Economics and Management, 2018, vol. 18, issue 2, No 1, 99-121

Abstract: Abstract Expansions of public health insurance have the potential to reduce the uninsured rate, but also to reduce coverage through employer-sponsored insurance (ESI), reduce labor supply, and increase job mobility. In January 2014, twenty-five states expanded Medicaid as part of the Affordable Care Act to low-income parents and childless adults. Using data from the 2011–2015 March Current Population Survey Supplements, we compare the changes in insurance coverage and labor market outcomes over time of adults in states that expanded Medicaid and in states that did not. Our estimates suggest that the recent expansion significantly increased Medicaid coverage with little decrease in ESI. Overall, the expansion did not impact labor market outcomes, including labor force participation, employment, and hours worked.

Keywords: Medicaid; Labor supply; Health insurance; Employment (search for similar items in EconPapers)
JEL-codes: I13 J22 I18 (search for similar items in EconPapers)
Date: 2018
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DOI: 10.1007/s10754-017-9226-8

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International Journal of Health Economics and Management is currently edited by Leemore Dafny, Robert Town, Mark Pauly, David Dranove and Pedro Pita Barros

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