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The Incentive Effects of Medicaid on Women's Labor Supply

Anne Winkler

Journal of Human Resources, 1991, vol. 26, issue 2, 308-337

Abstract: This paper investigates Medicaid's impact on women's labor supply behavior while taking into account Medicaid's link to the AFDC program. The data were extracted from the 1986 Current Population Survey. A major finding is that Medicaid, valued as government-provided health insurance, has a significant negative impact on an average female head's probability of working. For instance, a 10 percent increase in Medicaid would reduce a head's probability of working by.9 to 1.3 percentage points. Contrary to expectations, Medicaid is found to have a generally insignificant effect on hours worked.

Date: 1991
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