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The Effect of Public Insurance Coverage for Childless Adults on Labor Supply

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  • Laura Dague
  • Thomas DeLeire
  • Lindsey Leininger

Abstract

This study provides plausibly causal estimates of the effect of public insurance coverage on the employment of non-elderly, nondisabled adults without dependent children ("childless adults"). We take advantage of the sudden imposition of an enrollment cap in Wisconsin, comparing the labor supply of enrollees to eligible applicants placed on a waitlist using a regression discontinuity design and difference-in-differences methods. We find enrollment into public insurance leads to sizable and statistically meaningful reductions in employment, with an estimated effect size of just over 5 percentage points, a 12 percent decline. Confidence intervals rule out positive and large negative effects.

Suggested Citation

  • Laura Dague & Thomas DeLeire & Lindsey Leininger, 2017. "The Effect of Public Insurance Coverage for Childless Adults on Labor Supply," American Economic Journal: Economic Policy, American Economic Association, vol. 9(2), pages 124-154, May.
  • Handle: RePEc:aea:aejpol:v:9:y:2017:i:2:p:124-54
    Note: DOI: 10.1257/pol.20150059
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    Cited by:

    1. Li, Yajuan & Palma, Marco A. & Towne, Samuel, 2017. "Does Health Insurance Provision Improve Self-Employment and Entrepreneurship? Evidence from State Insurance Mandates," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258399, Agricultural and Applied Economics Association.
    2. repec:wly:jpamgt:v:36:y:2017:i:3:p:608-642 is not listed on IDEAS
    3. Jody Schimmel Hyde & Priyanka Anand & Maggie Colby & Lauren Hula & Paul O'Leary, "undated". "The Impact of Affordable Care Act Medicaid Expansions on Applications to Federal Disability Programs," Mathematica Policy Research Reports dffdcdfba16f4084890300ac0, Mathematica Policy Research.
    4. repec:ntj:journl:v:72:y:2019:i:2:p:261-322 is not listed on IDEAS
    5. Dillender, Marcus, 2015. "The effect of health insurance on workers’ compensation filing: Evidence from the affordable care act's age-based threshold for dependent coverage," Journal of Health Economics, Elsevier, vol. 43(C), pages 204-228.
    6. Yu-Chin Hsu & Chung-Ming Kuan & Giorgio Teng-Yu Lo, 2017. "Quantile Treatment Effects in Regression Discontinuity Designs with Covariates," IEAS Working Paper : academic research 17-A009, Institute of Economics, Academia Sinica, Taipei, Taiwan.
    7. Mark Duggan & Gopi Shah Goda & Emilie Jackson, 2019. "The Effects of the Affordable Care Act on Health Insurance Coverage and Labor Market Outcomes," National Tax Journal, National Tax Association;National Tax Journal, vol. 72(2), pages 261-322, June.
    8. Le, Nga T.Q. & Groot, Wim & Tomini, Sonila & Tomini, Florian, 2017. "Effects of health insurance on labour supply: Evidence from the health care fund for the poor in Viet Nam," MERIT Working Papers 050, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    9. Michael Levere & Sean Orzol & Lindsey Leininger & Nancy Early, "undated". "Contemporaneous and Long-Term Effects of Children's Public Health Insurance Expansions on Supplemental Security Income Participation," Mathematica Policy Research Reports 92d140d1a39741c481c4630bb, Mathematica Policy Research.
    10. repec:pal:easeco:v:45:y:2019:i:1:d:10.1057_s41302-018-0115-8 is not listed on IDEAS
    11. Pauline Leung & Alexandre Mas, 2016. "Employment Effects of the ACA Medicaid Expansions," Working Papers 594, Princeton University, Department of Economics, Industrial Relations Section..
    12. Julie Shi, 2016. "Income Responses to Health Insurance Subsidies: Evidence from Massachusetts," American Journal of Health Economics, MIT Press, vol. 2(1), pages 96-124, January.
    13. repec:eee:jhecon:v:60:y:2018:i:c:p:165-176 is not listed on IDEAS
    14. repec:eee:pubeco:v:149:y:2017:i:c:p:20-34 is not listed on IDEAS
    15. Kavan Kucko & Kevin Rinz & Benjamin Solow, 2017. "Labor Market Effects of the Affordable Care Act: Evidence from a Tax Notch," CARRA Working Papers 2017-07, Center for Economic Studies, U.S. Census Bureau.
    16. Katharine G. Abraham & Melissa S. Kearney, 2018. "Explaining the Decline in the U.S. Employment-to-Population Ratio: a Review of the Evidence," NBER Working Papers 24333, National Bureau of Economic Research, Inc.
    17. repec:mrr:papers:wp341 is not listed on IDEAS
    18. Robert Kaestner & Bowen Garrett & Jiajia Chen & Anuj Gangopadhyaya & Caitlyn Fleming, 2017. "Effects of ACA Medicaid Expansions on Health Insurance Coverage and Labor Supply," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 36(3), pages 608-642, June.
    19. repec:eee:pubeco:v:165:y:2018:i:c:p:170-200 is not listed on IDEAS
    20. Melanie Guldi & Lucie Schmidt, 2017. "Taxes, Transfers, and Women’s Labor Supply in the United States," Working Papers 2017-01, University of Central Florida, Department of Economics.
    21. Thomas Buchmueller & John C. Ham & Lara D. Shore-Sheppard, 2015. "The Medicaid Program," NBER Chapters,in: Economics of Means-Tested Transfer Programs in the United States, Volume 1, pages 21-136 National Bureau of Economic Research, Inc.
    22. Helen Levy & Thomas Buchmueller & Sayeh Nikpay, 2015. "The Effect of Health Reform on Retirement," Working Papers wp329, University of Michigan, Michigan Retirement Research Center.

    More about this item

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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