American Economic Review: Vol. 104 No. 5 (May 2014)

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The Impact of Medicaid on Labor Market Activity and Program Participation: Evidence from the Oregon Health Insurance Experiment

Article Citation

Baicker, Katherine, Amy Finkelstein, Jae Song, and Sarah Taubman. 2014. "The Impact of Medicaid on Labor Market Activity and Program Participation: Evidence from the Oregon Health Insurance Experiment." American Economic Review, 104(5): 322-28.

DOI: 10.1257/aer.104.5.322

Abstract

In 2008, a group of uninsured low-income adults in Oregon was selected by lottery for the chance to apply for Medicaid. Using this randomized design and 2009 administrative data, we find no significant effect of Medicaid on employment or earnings. Our 95 percent confidence intervals allow us to reject that Medicaid causes a decline in employment of more than 4.4 percentage points, or an increase of more than 1.2 percentage points. Medicaid increases food stamps receipt, but has little, if any, impact on receipt of other measured government benefits, including SSDI.

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Online Appendix (238.11 KB) | Download Data Set (14.83 KB) | Author Disclosure Statement(s) (71.12 KB)

Authors

Baicker, Katherine (Harvard U)
Finkelstein, Amy (MIT)
Song, Jae (US Social Security Administration)
Taubman, Sarah (NBER)

JEL Classifications

H75: State and Local Government: Health; Education; Welfare; Public Pensions
I13: Health Insurance, Public and Private
I18: Health: Government Policy; Regulation; Public Health
I38: Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
J22: Time Allocation and Labor Supply
J31: Wage Level and Structure; Wage Differentials


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