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Impact of the ACA’s Dependent Coverage Mandate on Health Insurance and Labor Market Outcomes Among Young Adults: Evidence from Regression Discontinuity Design

Author

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  • Barış K. Yörük

    (University at Albany, SUNY
    CESifo)

  • Linna Xu

    (University at Albany, SUNY)

Abstract

This paper identifies the effect of the Affordable Care Act’s dependent coverage mandate on health insurance coverage and labor market outcomes among young adults by exploiting the discrete change in health insurance coverage at age 26. Using a regression discontinuity design, we find that aging out from the ACA’s dependent coverage mandate is associated with up to a 4.2-percentage-point decrease in private insurance coverage at age 26. We also find that aging out from the mandate is significantly associated with an increase in the probability of being employed. However, we do not find any significant changes in hourly wage, weekly working hours or job mobility at age 26.

Suggested Citation

  • Barış K. Yörük & Linna Xu, 2019. "Impact of the ACA’s Dependent Coverage Mandate on Health Insurance and Labor Market Outcomes Among Young Adults: Evidence from Regression Discontinuity Design," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 45(1), pages 58-86, January.
    • Handle: RePEc:pal:easeco:v:45:y:2019:i:1:d:10.1057_s41302-018-0123-8
    DOI: 10.1057/s41302-018-0123-8
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    References listed on IDEAS

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    Cited by:

    1. Yörük, Barış K., 2023. "Does public policy affect attitudes? Evidence from age-based health insurance coverage policies in the United States," Journal of Economic Behavior & Organization, Elsevier, vol. 205(C), pages 287-302.
    2. Daeho Kim, 2022. "The Effect of the Affordable Care Act Dependent Coverage Mandate on Health Insurance and Labor Supply: Evidence from Alternative Research Designs," ILR Review, Cornell University, ILR School, vol. 75(3), pages 769-793, May.
    3. Yiran Han & Baris K. Yörük, 2022. "Age-Based Health Insurance Coverage Policies and Mental Health," CESifo Working Paper Series 9893, CESifo.
    4. Kim, Seonghoon & Koh, Kanghyock, 2021. "The Effects of the Affordable Care Act Dependent Coverage Mandate on Parents' Labor Market Outcomes," IZA Discussion Papers 14089, Institute of Labor Economics (IZA).
    5. DiNardi, Michael, 2021. "Aging out of the federal dependent coverage mandate and purchases of prescription drugs with high rates of misuse," Economics & Human Biology, Elsevier, vol. 43(C).
    6. Kim, Seonghoon & Koh, Kanghyock, 2022. "The effects of the affordable care act dependent coverage mandate on parents’ labor market outcomes," Labour Economics, Elsevier, vol. 75(C).
    7. Tu T. Nguyen & Barış K. Yörük, 2020. "Aging out of dependent coverage and the effects on the use of inpatient medical care," International Journal of Health Economics and Management, Springer, vol. 20(4), pages 381-390, December.

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    More about this item

    Keywords

    Health insurance; ACA’s dependent coverage mandate; Employment; Job mobility; Regression discontinuity design;
    All these keywords.

    JEL classification:

    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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