Upjohn Institute working paper ; 15-234
Conventional labor supply studies assume constant eligibility monitoring of income-tested program participants, but this is not true for most programs. For example, states can allow children to enroll in Medicaid/CHIP for 12 months regardless of family income changes. A long recertification period reduces monitoring costs but is predicted to induce program participation by temporary income adjustments. However, I find little evidence of strategic behavior from the 2001 and 2004 Survey of Income and Program Participation. Given the lack of dynamic responses, I propose a framework to compute the optimal recertification period and find 12 months to be its lower bound.
LABOR MARKET ISSUES; Wages, health insurance and other benefits; Health insurance; UNEMPLOYMENT, DISABILITY, and INCOME SUPPORT PROGRAMS; Poverty and income support; Income support programs
Pei, Zhuan. 2015. "Eligibility Recertification and Dynamic Opt-in Incentives in Income-tested Social Programs: Evidence from Medicaid/CHIP." Upjohn Institute Working Paper 15-234. Kalamazoo, MI: W.E. Upjohn Institute for Employment Research. http://dx.doi.org/10.17848/wp15-234