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The Effect of Medicaid Expansions in the Late 1980s and Early 1990s on the Labor Supply of Pregnant Women

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  • Dhaval M. Dave
  • Sandra L. Decker
  • Robert Kaestner
  • Kosali Ilayperuma Simon

Abstract

A substantial body of research has found that expansions in Medicaid eligibility increased enrollment in Medicaid, reduced the rate of uninsured, and reduced the rate of private health insurance coverage (i.e., crowd out). Notably, there has been little research that has examined the mechanism by which crowd-out occurs. This study examines the effects of expansions in Medicaid eligibility for pregnant women in the late 1980s and the early 1990s on labor supply, which is one of the possible mechanisms underlying crowd out. Estimates suggest that the 20 percentage point increase in Medicaid eligibility during the sample period was associated with a 6% to 7% decrease in the probability that a woman who gave birth in the past year was employed. Among unmarried women with less than a high school education, the change in Medicaid eligibility reduced employment by approximately 13% to 16%.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 19161.

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Date of creation: Jun 2013
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Handle: RePEc:nbr:nberwo:19161

Note: CH HC HE LS PE
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  1. Lo Sasso, Anthony T. & Buchmueller, Thomas C., 2004. "The effect of the state children's health insurance program on health insurance coverage," Journal of Health Economics, Elsevier, Elsevier, vol. 23(5), pages 1059-1082, September.
  2. Anne E. Winkler, 1991. "The Incentive Effects of Medicaid on Women's Labor Supply," Journal of Human Resources, University of Wisconsin Press, University of Wisconsin Press, vol. 26(2), pages 308-337.
  3. Cutler, David M & Gruber, Jonathan, 1996. "Does Public Insurance Crowd Out Private Insurance?," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 111(2), pages 391-430, May.
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As found by EconAcademics.org, the blog aggregator for Economics research:
  1. #HEJC papers for August 2013
    by academichealtheconomists in The Academic Health Economists' Blog on 2013-07-31 23:00:48
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Cited by:
  1. Dague, Laura & DeLeire, Thomas C. & Leininger, Lindsey, 2014. "The Effect of Public Insurance Coverage for Childless Adults on Labor Supply," IZA Discussion Papers, Institute for the Study of Labor (IZA) 8187, Institute for the Study of Labor (IZA).
  2. Katherine Baicker & Amy Finkelstein & Jae Song & Sarah Taubman, 2013. "The Impact of Medicaid on Labor Force Activity and Program Participation: Evidence from the Oregon Health Insurance Experiment," NBER Working Papers, National Bureau of Economic Research, Inc 19547, National Bureau of Economic Research, Inc.
  3. Pashchenko, Svetlana & Porapakkarm, Ponpoje, 2013. "Work Incentives of Medicaid Beneficiaries and The Role of Asset Testing," MPRA Paper, University Library of Munich, Germany 49730, University Library of Munich, Germany.

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