The Effects of Access to Medicaid on the Employment and Academic Progress of College Students

Abstract

This paper examines whether expanding Medicaid eligibility affects the employment patterns and academic progress of college students. To estimate causal relationships, we use variation in eligibility due to the Affordable Care Act Medicaid expansions that occurred in a subset of U.S. states. Using data from the National Postsecondary Student Aid Study, we show that expanding Medicaid resulted in a decrease in employment intensity that is most pronounced for students at community colleges. We also see evidence of students making better progress towards graduation, suggesting that expanding Medicaid may have benefited some students by allowing them to shift their focus from work to school. These findings provide insight into how access to publicly-provided health insurance can reduce inequalities in long-term education and socioeconomic outcomes.

Keywords: postsecondary education, labor supply, health insurance, Medicaid expansion JEL Codes: I13