Did expanding Medicaid affect welfare participation?
In a widely cited 1995 paper, Aaron Yelowitz concluded that Medicaid eligibility expansions for children were associated with increased labor force participation and reduced welfare participation among single mothers. The authors of the present study, using data from the 1988-96 Current Population Surveys, re-examine the evidence presented by Yelowitz. They find that Yelowitz's results resulted from two factors: he imposed a restriction on the parameter estimates not predicted by theory and rejected in the data, and he used only one of two income tests that families must pass to be eligible for welfare. The authors conclude that there is no evidence detectable in the CPS data of a relationship between welfare or labor force participation and the Medicaid income limits. (Free full-text download available at http://digitalcommons.ilr.cornell.edu/ilrreview/.)
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Volume (Year): 58 (2005)
Issue (Month): 3 (April)
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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- 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.
- Aaron Yelowitz, 1995. "The Medicaid Notch, Labor Supply and Welfare Participation: Evidence from Eligibility Expansions," UCLA Economics Working Papers 738, UCLA Department of Economics.
- Moffitt, Robert & Wolfe, Barbara L, 1992.
"The Effect of the Medicaid Program on Welfare Participation and Labor Supply,"
The Review of Economics and Statistics,
MIT Press, vol. 74(4), pages 615-26, November.
- 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.
- Cutler, David M & Gruber, Jonathan, 1996.
"Does Public Insurance Crowd Out Private Insurance?,"
The Quarterly Journal of Economics,
MIT Press, vol. 111(2), pages 391-430, May.
- David M. Cutler & Jonathan Gruber, 1995. "Does Public Insurance Crowd Out Private Insurance?," NBER Working Papers 5082, National Bureau of Economic Research, Inc.
- 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.
- Bruce D. Meyer & Dan T. Rosenbaum, 1998. "Welfare, the Earned Income Tax Credit, and the Labor Supply of Single Mothers," JCPR Working Papers 32, Northwestern University/University of Chicago Joint Center for Poverty Research.
- Bruce D. Meyer & Dan T. Rosenbaum, 1999. "Welfare, the Earned Income Tax Credit, and the Labor Supply of Single Mothers," NBER Working Papers 7363, National Bureau of Economic Research, Inc.
- 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.
- 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.
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