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Cross‐state variation in Medicaid programs and female labor supply
Author(s) -
Montgomery E,
Navin JC
Publication year - 2000
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.2000.tb00026.x
Subject(s) - generosity , medicaid , current population survey , economics , demographic economics , variation (astronomy) , population , test (biology) , labour economics , state (computer science) , ordinary least squares , econometrics , medicine , economic growth , health care , environmental health , mathematics , political science , paleontology , physics , algorithm , astrophysics , law , biology
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.