Childhood Medicaid Eligibility and Human Capital

Although a sizeable literature studies the effect of Medicaid on health, less is known about its effects on education. We use a discontinuity in Medicaid eligibility based on date of birth and administrative school records to study the effects of expanded Medicaid eligibility during middle childhood, between the ages of 8 and 11. We evaluate effects of this Medicaid expansion on outcomes measured a few years later when the children are 12-14 years old. We find that it is associated with a significant increase in the grade that children are in and a reduction in the likelihood that a child is below grade for age. We do not find any evidence for effects on documented disabilities or absences. Our results underscore that Medicaid has important effects on children's human capital.