The Long-Run Effects of Childhood Insurance Coverage: Medicaid Implementation, Adult Health, and Labor Market Outcomes

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Abstract

This paper estimates the long-run effects of childhood Medicaid eligibility on adult health and economic outcomes using the program's original introduction (1966–1970) and its mandated coverage of welfare recipients. The design compares cohorts born in different years relative to Medicaid implementation, in states with different preexisting welfare-based eligibility. Early childhood Medicaid eligibility reduces mortality and disability, increases employment, and reduces receipt of disability transfer programs up to 50 years later. Medicaid has saved the government more than its original cost and saved more than 10 million quality adjusted life years.

Citation

Goodman-Bacon, Andrew. 2021. "The Long-Run Effects of Childhood Insurance Coverage: Medicaid Implementation, Adult Health, and Labor Market Outcomes." American Economic Review, 111 (8): 2550-93. DOI: 10.1257/aer.20171671

Additional Materials

JEL Classification

  • H51 National Government Expenditures and Health
  • I12 Health Behavior
  • I18 Health: Government Policy; Regulation; Public Health
  • I32 Measurement and Analysis of Poverty
  • I38 Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
  • J13 Fertility; Family Planning; Child Care; Children; Youth