Public Health Insurance and Employment Transitions

48 Pages Posted: 31 Dec 2016 Last revised: 18 Jan 2022

See all articles by Erkmen Giray Aslim

Erkmen Giray Aslim

Grand Valley State University - Seidman School of Business

Date Written: February 4, 2020

Abstract

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

Aslim, Erkmen Giray, Public Health Insurance and Employment Transitions (February 4, 2020). Labour Economics, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2891510 or http://dx.doi.org/10.2139/ssrn.2891510

Erkmen Giray Aslim (Contact Author)

Grand Valley State University - Seidman School of Business ( email )

Grand Rapids, MI 49504
United States

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