The effect of the original introduction of Medicaid on welfare participation and female labor supply
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This paper uses the fact that states introduced Medicaid programs at different times between 1966 and 1972 to estimate Medicaid’s effect on Aid to Families with Dependent Children (AFDC) participation. Using state-level data, we find that the introduction of Medicaid accounted for approximately 10% of growth in AFDC caseloads from 1964 to 1974, a time period during which there was thought to be significant unexplained growth in caseloads. Analysis of individual-level data indicates that Medicaid’s effect on AFDC participation occurred through its effect in increasing the number of eligibles who participated in the program, and not because of increases in eligibility or reductions in workforce participation.
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- The effect of the original introduction of Medicaid on welfare participation and female labor supply
Review of Economics of the Household
Volume 10, Issue 4 , pp 541-556
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- Labor supply
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- Author Affiliations
- 1. National Center for Health Statistics, Centers for Disease Control and Prevention, 3311 Toledo Road, Room 3316, Hyattsville, MD, 20782, USA
- 2. Bloomberg School of Public Health, Johns Hopkins University, 624 North Broadway, Baltimore, MD, 21205, USA