Does Public Healthcare Affect Firm Outcomes? Plant-level Evidence from U.S. Manufacturing Firms

41 Pages Posted: 3 Apr 2020

See all articles by John (Jianqiu) Bai

John (Jianqiu) Bai

Northeastern University - D'Amore-McKim School of Business

Wang Jin

Massachusetts Institute of Technology (MIT)

Yue Qiu

Temple University

Date Written: March 9, 2020

Abstract

Using confidential establishment-level data from the U.S. Census Bureau, this paper studies the effects of ACA Medicaid expansion on corporate behavior in the U.S. manufacturing sector. We find that Medicaid expansion leads to a significant decrease in capital investment and productivity at the plant level. However, the effect of Medicaid expansion on plant-level employment or labor compensation is economically small. We find that there are no differential pre-treatment trends in the outcomes across plants in states that expanded and did not expand Medicaid.

Keywords: Corporate Investment; Labor; Healthcare

JEL Classification: E20; E22; I13

Suggested Citation

Bai, John (Jianqiu) and Jin, Wang and Qiu, Yue, Does Public Healthcare Affect Firm Outcomes? Plant-level Evidence from U.S. Manufacturing Firms (March 9, 2020). Available at SSRN: https://ssrn.com/abstract=3551745 or http://dx.doi.org/10.2139/ssrn.3551745

John (Jianqiu) Bai (Contact Author)

Northeastern University - D'Amore-McKim School of Business ( email )

220 B RP
Boston, MA 02115
United States

Wang Jin

Massachusetts Institute of Technology (MIT) ( email )

77 Massachusetts Avenue
50 Memorial Drive
Cambridge, MA 02139-4307
United States

Yue Qiu

Temple University ( email )

Philadelphia, PA 19122
United States

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