Public Health Insurance and Employment Transitions
48 Pages Posted: 31 Dec 2016 Last revised: 18 Jan 2022
Date Written: February 4, 2020
This study explores the effect of public health insurance on employment transitions among adults without dependent children. Under the Affordable Care Act, many states expanded Medicaid eligibility to cover adults with incomes up to 138 percent of the federal poverty level. I exploit this eligibility cutoff in a difference-in-discontinuities design and find that the probability of part-time employment increases relative to full-time employment. These employment transitions are strongest among females, low-educated workers, and individuals aged 45-64. An exploration of potential mechanisms shows that employment transitions are due to personal (voluntary) reasons as opposed to economic (involuntary) reasons, suggesting that increases in part-time employment are through the labor supply channel.
Keywords: Affordable Care Act; health insurance; labor supply; difference-in-discontinuities
JEL Classification: C21, J21, J26, I10
Suggested Citation: Suggested Citation