Volume 26, Number 2 (Spring) 1991
Winkler, Anne E. 1991. "The Incentive Effects of Medicaid on Women's Labor Supply." Journal of Human Resources 26(2):308-337.
This paper investigates Medicaid's impact on women's labor supply behavior while taking into account Medicaid's link to the AFDC program. The data were extracted from the 1986 Current Population Survey. A major finding is that Medicaid, valued as government-provided health insurance, has a significant negative impact on an average female head's probability of working. For instance, a 10 percent increase in Medicaid would reduce a head's probability or working by .9 to 1.3 percentage points. Contrary to expectations, Medicaid is found to have a generally insignificant effect on hours worked.
The author is an assistant professor of economics and public policy administration and a fellow in the center for Metropolitan Studies at the University of Missouri - St. Louis. She is greatly indebted to Francine Blau for her many helpful comments. Additional useful suggestions on earlier drafts of this paper were made by Lawrence Kahn, J. Fred Giertz, and three anonymous referees. She claims responsibility for any remaining errors. The data used in this article can be obtained beginning in October 1991 through October 1994 from the author at the following address: Department of Economics, University of Missouri - St. Louis, St. Louis, MO 63121-4499.
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