Cross-state variation in Medicaid programs and female labor supply |
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| Authors: | E Montgomery JC Navin |
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| Affiliation: | Montgomery:;Professor of Economics, Department of Economics, University of Maryland and NMBER, College Park, MD 20866, USA Phone: 1 202 693 6002 Fax: 1 202 693 6143 E-mail: Navin:;Associate Professor of Economics, Department of Economics, Southern Illinois University Edwardsville, Edwardsville, IL 62026-1102, USA Phone: 1 618 650 3424 Fax: 1 618 650 3047 E-mail: |
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| Abstract: | Using a pooled cross-section data set from the 1980 through 1993 Current Population Survey March Supplements, we test if different Medicaid benefit levels across states impact the labor supply behavior of female heads of households. The ordinary least square (OLS) results support the prediction that Medicaid expenditures reduce labor supply. Controlling for state fixed or random effects alters the effect of both AFDC and Medicaid on the decision to participate as well as the number of hours worked. We also find that while the effects of program generosity are sensitive to the inclusion of state effects those of variation in eligibility thresholds are not. |
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