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Labor Force Participation and the Extension of Medicaid by the Forthcoming Affordable Care Act of 2010

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  • Ewing, J. Alexander
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    Abstract

    This paper investigates the impact of Medicaid eligibility expansion set forth in the Patient Protection and Affordable Care Act of 2010. The extension of Medicaid eligibility to 133% of the Federal Poverty level nationwide will impact labor force participation and welfare participation decisions of single mothers with dependent children. Following from existing literature, this paper uses a simple probit model to analyze the probability changes of labor force and welfare participation as well as identify which characteristics contribute most to these decisions. Mixed results suggest that the eligibility expansion will reduce welfare participation decisions for single white mother by 1.14%.

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    File URL: http://purl.umn.edu/124584
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    Bibliographic Info

    Paper provided by Agricultural and Applied Economics Association in its series 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington with number 124584.

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    Date of creation: 2012
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    Handle: RePEc:ags:aaea12:124584

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    Keywords: Health Economics and Policy;

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    1. Bruce D. Meyer & Dan T. Rosenbaum, 2001. "Welfare, The Earned Income Tax Credit, And The Labor Supply Of Single Mothers," The Quarterly Journal of Economics, MIT Press, vol. 116(3), pages 1063-1114, August.
    2. Yelowitz, Aaron S, 1995. "The Medicaid Notch, Labor Supply, and Welfare Participation: Evidence from Eligibility Expansions," The Quarterly Journal of Economics, MIT Press, vol. 110(4), pages 909-39, November.
    3. Anne E. Winkler, 1991. "The Incentive Effects of Medicaid on Women's Labor Supply," Journal of Human Resources, University of Wisconsin Press, vol. 26(2), pages 308-337.
    4. Rebecca M. Blank, 1989. "The Effect of Medical Need and Medicaid on AFDC Participation," Journal of Human Resources, University of Wisconsin Press, vol. 24(1), pages 54-87.
    5. Robert Moffitt & Barbara Wolfe, 1990. "The Effect of the Medicaid Program on Welfare Participation and Labor Supply," NBER Working Papers 3286, National Bureau of Economic Research, Inc.
    6. Ham, John C. & Shore-Sheppard, Lara, 2005. "The effect of Medicaid expansions for low-income children on Medicaid participation and private insurance coverage: evidence from the SIPP," Journal of Public Economics, Elsevier, vol. 89(1), pages 57-83, January.
    7. Sandra Decker & Frederic Selck, 2012. "The effect of the original introduction of Medicaid on welfare participation and female labor supply," Review of Economics of the Household, Springer, vol. 10(4), pages 541-556, December.
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