Medicaid and the Labor Supply of Single Mothers: Implications for Health Care Reform [report]

Vincent Pohl
2014 unpublished
The Patient Protection and Affordable Care Act expands Medicaid and in-troduces health insurance subsidies, thereby changing work incentives for single mothers. To undertake an ex ante policy evaluation of the employment effects of the PPACA, I structurally estimate a model of labor supply and health in-surance choice exploiting existing variation in Medicaid policies. Simulations show that single mothers increase their labor supply at the extensive and the intensive margin by six and five
more » ... y six and five percent, respectively. The PPACA leads to crowding-out of employer-sponsored health insurance of about 40 percent and increases single mothers' welfare by about $190 per month. JEL Classification Codes: I18, I3, J2.
doi:10.17848/wp15-222 fatcat:emi3jigwgve5lkkzqpfsjwjuqq