Public Health Insurance and Employment Transitions
35 Pages Posted: 31 Dec 2016 Last revised: 5 Feb 2020
Date Written: February 4, 2020
This study explores the effect of public health insurance on employment transitions of 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 sharp 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. I find 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