Working Paper: NBER ID: w26553
Authors: Thomas C. Buchmueller; Helen G. Levy; Robert G. Valletta
Abstract: We examine how a key provision of the Affordable Care Act--the expansion of Medicaid eligibility--affected health insurance coverage, access to care, and labor market transitions of unemployed workers. Comparing trends in states that implemented the Medicaid expansion to those that did not, we find that the ACA Medicaid expansion substantially increased insurance coverage and improved access to health care among unemployed workers. We then test whether this strengthening of the safety net affected transitions from unemployment to employment or out of the labor force. We find no meaningful statistical evidence in support of moral hazard effects that reduce job finding or labor force attachment.
Keywords: Medicaid; Unemployment; Affordable Care Act; Labor Market
JEL Codes: I13; I18; J18; J2; J6
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Medicaid expansion (I18) | health insurance coverage (I13) |
| Medicaid expansion (I18) | uninsurance rates (I13) |
| Medicaid expansion (I18) | transitions from unemployment to employment (J68) |
| Medicaid expansion (I18) | labor force exits (J63) |
| Medicaid expansion (I18) | labor force attachment (J22) |