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The Impact of Medicaid on Labor Force Activity and Program Participation: Evidence from the Oregon Health Insurance Experiment

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  • Katherine Baicker
  • Amy Finkelstein
  • Jae Song
  • Sarah Taubman
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Abstract

In 2008, a group of uninsured low-income adults in Oregon was selected by lottery for the chance to apply for Medicaid. We use this randomized design and 2009 administrative data to evaluate the effect of Medicaid on labor market outcomes and participation in other social safety net programs. We find no significant effect of Medicaid on employment or earnings: our 95 percent confidence intervals allow us to reject that Medicaid causes a decline in employment of more than 4.4 percentage points, or an increase of more than 1.2 percentage points. We find that Medicaid increases receipt of food stamps, but has little, if any, impact on receipt of other government benefits, including SSDI.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 19547.

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Date of creation: Oct 2013
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Handle: RePEc:nbr:nberwo:19547

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  1. Aaron S. Yelowitz, 1996. "Did Recent Medicaid Reforms Cause the Caseload Explosion in the Food Stamp Program?," UCLA Economics Working Papers 756, UCLA Department of Economics.
  2. Aaron Yelowitz, 1996. "Using the Medicare Buy-In Program to Estimate the Effect of Medicaid on SSI - Participation," UCLA Economics Working Papers 753, UCLA Department of Economics.
  3. A. S. Yelowitz, . "The Medicaid notch, labor supply, and welfare participation: Evidence from eligibility expansions," Institute for Research on Poverty Discussion Papers 1084-96, University of Wisconsin Institute for Research on Poverty.
  4. Dhaval M. Dave & Sandra L. Decker & Robert Kaestner & Kosali Ilayperuma Simon, 2013. "The Effect of Medicaid Expansions in the Late 1980s and Early 1990s on the Labor Supply of Pregnant Women," NBER Working Papers 19161, National Bureau of Economic Research, Inc.
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