Did Expanding Medicaid Affect Welfare Participation?

John C. Ham · Lara Dawn Shore-Sheppard

81 citations0/0 files storedIndustrial and Labor Relations Review

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Gender, Labor, and Family Dynamics Healthcare Policy and Management Labor market dynamics and wage inequality

Abstract

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.

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2001Welfare, the Earned Income Tax Credit, and the Labor Supply of Single Mothers 1996Does Public Insurance Crowd out Private Insurance?1995The Medicaid Notch, Labor Supply, and Welfare Participation: Evidence from Eligibility Expansions 1983Determining Participation in Income-Tested Social Programs 1992The Effect of the Medicaid Program on Welfare Participation and Labor Supply 1991The Incentive Effects of Medicaid on Women's Labor Supply

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2007Crowd-Out Ten Years Later: Have Recent Public Insurance Expansions Crowded Out Private Health Insurance?2009The Impact of Children's Public Health Insurance Expansions on Educational Outcomes 2011Medicaid's effect on single women's labor supply: Evidence from the introduction of Medicaid 2009Seam Bias, Multiple-State, Multiple-Spell Duration Models and the Employment Dynamics of Disadvantaged Women 2013The Effects of Medicaid Earnings Limits on Earnings Growth among Poor Workers 2011The effect of the original introduction of Medicaid on welfare participation and female labor supply 2014

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