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Does medicaid generosity affect household income? |
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| Institution: | 1. Business School, University of Edinburgh, UK;2. College of Business, University of Tulsa, USA;3. LREC Endowed Chair of Real Estate, Department of Finance, Louisiana State University, USA;1. Department of Economics, Business and Finance, Mutah University, Karak, Jordan;2. Department of Economic and Statistics Cognetti De Martiis, University of Turin, Department of Economics and Finance, Brunel University London, Lungo Dora Siena 100A, Turin, Italy;1. Banco de Portugal, Portugal;2. Banco de Portugal, Nova SBE, Portugal;1. Economics Department, University of Girona, Carrer de la Universitat, 10. Campus de Montilivi, 17003 Girona, Spain;2. Applied Economics Department, Autonomous University of Barcelona, 08193, Bellaterra, Barcelona, Spain;1. School of Economics, Huazhong University of Science and Technology, 1037# Luoyu Road, Wuhan, Hubei, 430074, China;2. School of Accounting, Zhongnan University of Economics and Law, 182# Nanhu Avenue, Wuhan, Hubei, 430073, China |
| Abstract: | Almost all recent literature on Medicaid and labor supply has used Affordable Care Act (ACA)-induced Medicaid eligibility expansions in various states as natural experiments. Estimated effects on employment and earnings differ widely due to differences in the scope of eligibility expansion across states and are potentially subject to biases due to policy endogeneity. Using a Regression Kink Design (RKD) framework, this paper takes a new approach to the identification of the effect of Medicaid generosity on household income. Both state-level data and March CPS data from 1980 to 2013 suggest that generous federal funding of state-level Medicaid costs have a negative effect on household income. The negative impact of Medicaid generosity on household income is more pronounced at the lower end of the household income distribution and on the income and earnings of female heads. |
| Keywords: | Medicaid and household income Regression kink design C31 E62 I38 H31 |
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