Upjohn Institute working paper ; 15-222
The Patient Protection and Affordable Care Act expands Medicaid and introduces 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 insurance 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 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.
May 27, 2014
W.E. Upjohn Institute for Employment Research Early Career Research Award 13-141-08
LABOR MARKET ISSUES; Wages, health insurance and other benefits; Health insurance; UNEMPLOYMENT, DISABILITY, and INCOME SUPPORT PROGRAMS; Poverty and income support; Low wage labor markets
Pohl, Vincent. 2014. "Medicaid and the Labor Supply of Single Mothers: Implications for Health Care Reform." Upjohn Institute Working Paper 15-222. Kalamazoo, MI: W.E. Upjohn Institute for Employment Research. http://dx.doi.org/10.17848/wp15-222