Public Health Insurance and Employment Transitions
46 Pages Posted: 31 Dec 2016 Last revised: 16 May 2019
Date Written: May 15, 2019
This paper investigates the pre/post labor market implications of the Affordable Care Act's (ACA) Medicaid expansion for a population near the eligibility cutoff. Exploiting the plausibly exogenous variation at the cutoff, I find that Medicaid enrollment increases for adults without dependent children. In expansion states, the probability of part-time employment increases at the cutoff, a result supporting "job lock" effects. The decrease in labor supply is strongest among females, low-educated workers, and individuals aged 45-64. There is also no evidence of employment transitions in non-expansion states.
Keywords: ACA's Medicaid expansion; job lock; difference-in-discontinuities
JEL Classification: C21, J21, J26, I10
Suggested Citation: Suggested Citation