The Effect of Medicaid Expansions in the Late 1980s and Early 1990s on the Labor Supply of Pregnant Women

40 Pages Posted: 29 Jun 2013 Last revised: 10 May 2021

See all articles by Dhaval Dave

Dhaval Dave

Bentley University - Department of Economics; National Bureau of Economic Research (NBER) - NY Office

Sandra Decker

Government of the United States of America - Agency for Healthcare Research & Quality (AHRQ)

Sandra L. Decker

International Longevity Center; National Bureau of Economic Research (NBER)

Robert Kaestner

University of Chicago; National Bureau of Economic Research (NBER)

Kosali Ilayperuma Simon

Indiana University Bloomington - School of Public & Environmental Affairs (SPEA); National Bureau of Economic Research (NBER)

Date Written: June 2013

Abstract

A substantial body of research has found that expansions in Medicaid eligibility increased enrollment in Medicaid, reduced the rate of uninsured, and reduced the rate of private health insurance coverage (i.e., crowd out). Notably, there has been little research that has examined the mechanism by which crowd-out occurs. This study examines the effects of expansions in Medicaid eligibility for pregnant women in the late 1980s and the early 1990s on labor supply, which is one of the possible mechanisms underlying crowd out. Estimates suggest that the 20 percentage point increase in Medicaid eligibility during the sample period was associated with a 6% to 7% decrease in the probability that a woman who gave birth in the past year was employed. Among unmarried women with less than a high school education, the change in Medicaid eligibility reduced employment by approximately 13% to 16%.

Suggested Citation

Dave, Dhaval and Decker, Sandra and Decker, Sandra L. and Kaestner, Robert and Simon, Kosali Ilayperuma, The Effect of Medicaid Expansions in the Late 1980s and Early 1990s on the Labor Supply of Pregnant Women (June 2013). NBER Working Paper No. w19161, Available at SSRN: https://ssrn.com/abstract=2287021

Dhaval Dave (Contact Author)

Bentley University - Department of Economics ( email )

175 Forest Street
Waltham, MA 02452-4705
United States

National Bureau of Economic Research (NBER) - NY Office

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New York, NY 10016-4309
United States

Sandra Decker

Government of the United States of America - Agency for Healthcare Research & Quality (AHRQ) ( email )

540 Gaither Road, Suite 2000
Rockville, MD 20850
United States

Sandra L. Decker

International Longevity Center ( email )

60 East 86th Street
New York, NY 10028
United States

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
United States

Robert Kaestner

University of Chicago ( email )

1155 East 60th Street
Chicago, IL 60637
United States

National Bureau of Economic Research (NBER)

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New York, NY 10004
United States

Kosali Ilayperuma Simon

Indiana University Bloomington - School of Public & Environmental Affairs (SPEA) ( email )

1315 East Tenth Street
Bloomington, IN 47405
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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