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The Affordable Care Act and College Enrollment Decisions

Listed author(s):
  • Juergen Jung

    ()

    (Department of Economics, Towson University)

  • Vinish Shrestha

    ()

    (Department of Economics, Towson University)

We investigate the effect of the extension of the federal dependent coverage mandate for young adults under the Affordable Care Act (ACA) on the college enrollment decisions of young Americans. The ACA removes the conditionality that young individuals need to be enrolled as full-time students in order to be able to remain on their parents’ health insurance past the age of 18 and extends the coverage mandate to age 26 irrespective of student status. This expansion of the coverage mandate changes the incentives for the full-time and part-time college enrollment decisions of young individuals. We use panel data from the Survey of Income and Program Participation (SIPP) for the years 2003–2013 and estimate that the dependent coverage expansion under the ACA decreases the probability to enroll as full-time student by 2 to 3 percentage points. Furthermore we find that part-time college enrollment is unaffected by the new policy. The results from a difference-in-differences model are robust to changes in the model specification and become stronger when we increase the sample overlap between treatment and control groups using trimming based on propensity scores.

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File URL: http://webapps.towson.edu/cbe/economics/workingpapers/2016-16.pdf
File Function: First version, 2016
Download Restriction: no

Paper provided by Towson University, Department of Economics in its series Working Papers with number 2016-16.

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Length: 46 pages
Date of creation: Oct 2016
Date of revision: May 2017
Handle: RePEc:tow:wpaper:2016-16
Contact details of provider: Postal:
Towson, Maryland 21252-0001

Phone: 410-704-2959
Fax: 410-704-3424
Web page: http://www.towson.edu/cbe/departments/economics/

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  1. Gregory Colman & Dhaval Dave, 2015. "It’s About Time: Effects of the Affordable Care Act Dependent Coverage Mandate On Time Use," NBER Working Papers 21725, National Bureau of Economic Research, Inc.
  2. James Bailey & Anna Chorniy, 2016. "Employer-Provided Health Insurance And Job Mobility: Did The Affordable Care Act Reduce Job Lock?," Contemporary Economic Policy, Western Economic Association International, vol. 34(1), pages 173-183, 01.
  3. Jung, Juergen & Hall, Diane M. Harnek & Rhoads, Thomas, 2013. "Does the availability of parental health insurance affect the college enrollment decision of young Americans?," Economics of Education Review, Elsevier, vol. 32(C), pages 49-65.
  4. Jonathan Gruber & Brigitte C. Madrian, 2002. "Health Insurance, Labor Supply, and Job Mobility: A Critical Review of the Literature," JCPR Working Papers 255, Northwestern University/University of Chicago Joint Center for Poverty Research.
  5. Akosa Antwi, Yaa & Moriya, Asako S. & Simon, Kosali I., 2015. "Access to health insurance and the use of inpatient medical care: Evidence from the Affordable Care Act young adult mandate," Journal of Health Economics, Elsevier, vol. 39(C), pages 171-187.
  6. Hsin-Ling Hsieh, 2008. "Do Adult Children Matter?-The Effects Of National Health Insurance On Retirement Behavior: Evidence From Taiwan," Contemporary Economic Policy, Western Economic Association International, vol. 26(2), pages 317-334, 04.
  7. Depew, Briggs & Bailey, James, 2015. "Did the Affordable Care Act's dependent coverage mandate increase premiums?," Journal of Health Economics, Elsevier, vol. 41(C), pages 1-14.
  8. Imbens,Guido W. & Rubin,Donald B., 2015. "Causal Inference for Statistics, Social, and Biomedical Sciences," Cambridge Books, Cambridge University Press, number 9780521885881.
  9. Charles Courtemanche & James Marton & Benjamin Ukert & Aaron Yelowitz & Daniela Zapata, 2016. "Impacts of the Affordable Care Act on Health Insurance Coverage in Medicaid Expansion and Non-Expansion States," NBER Working Papers 22182, National Bureau of Economic Research, Inc.
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