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

Upjohn Institute working paper No. 14-213

45 Pages Posted: 6 Jun 2014

See all articles by Laura Dague

Laura Dague

Texas A&M University - George Bush School of Government and Public Service; National Bureau of Economic Research (NBER)

Thomas DeLeire

Georgetown University; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

Lindsey Leininger

University of Illinois at Chicago - School of Public Health

Date Written: April 15, 2014

Abstract

This study provides plausibly causal estimates of the effect of public insurance coverage on the employment of nonelderly, nondisabled adults without dependent children (“childless adults”). We use regression discontinuity and propensity score matching difference-in-differences methods to take advantage of the sudden imposition of an enrollment cap, comparing the labor supply of enrollees to eligible applicants on a waitlist. We find that enrollment into public insurance leads to sizable and statistically meaningful reductions in employment up to at least nine quarters later, with an estimated size of 2-10 percentage points, depending on the model used.

Keywords: health insurance, labor supply, employment, Medicaid

JEL Classification: I18, I38, J22

Suggested Citation

Dague, Laura and DeLeire, Thomas and Leininger, Lindsey, The Effect of Public Insurance Coverage for Childless Adults on Labor Supply (April 15, 2014). Upjohn Institute working paper No. 14-213, Available at SSRN: https://ssrn.com/abstract=2446510 or http://dx.doi.org/10.2139/ssrn.2446510

Laura Dague (Contact Author)

Texas A&M University - George Bush School of Government and Public Service ( email )

4220 TAMU
College Station, TX 77843
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National Bureau of Economic Research (NBER) ( email )

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Cambridge, MA 02138
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Thomas DeLeire

Georgetown University ( email )

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Washington, DC 20057
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National Bureau of Economic Research (NBER) ( email )

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IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Lindsey Leininger

University of Illinois at Chicago - School of Public Health ( email )

1603 West Taylor Street
Chicago, IL 60612
United States

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