Affordable Care Act Medicaid Expansions and the Nurse Labor Market

Abstract

Shortages in healthcare labor markets were a major concern voiced by critics of the 2010 Patient Protection and Affordable Care Act. Using a difference-in-differences strategy, I find the 2014 Medicaid expansions increased the average workweek by 30 minutes for registered nurses and 50 minutes for licensed practical nurses, driven by an increase in full-time work. Registered nurses and licensed practical nurses were 3 and 5 percentage points, respectively, more likely to work full-time due to the Medicaid expansions. Effects are larger in the long-term care, home healthcare, and social services sector and in rural areas where the expansions likely had the largest impact on utilization. I do not find effects on nurse labor supply, suggesting the expansion of Medicaid led to a small increase in demand for nurses.

Keywords: Affordable Care Act, Medicaid, Nurses

JEL Classification: I13, I18, J23