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Research ArticleArticles

Medicaid Benefit Generosity and Labor Market Outcomes

Evidence from Medicaid Adult Vision Benefits

Michel H. Boudreaux and Brandy J. Lipton
Journal of Human Resources, March 2021, 56 (2) 539-569; DOI: https://doi.org/10.3368/jhr.56.2.1117-9193R2
Michel H. Boudreaux
Michel Boudreaux is an associate professor of health policy and management at the University of Maryland.
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Brandy J. Lipton
Brandy Lipton is an assistant professor of health management and policy at San Diego State University
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  • For correspondence: [email protected]
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Abstract

This paper examines whether Medicaid adult vision coverage affects labor market activity by using state-by-year changes to these benefits. We find that vision benefits increase hours worked and occupational skill requirements, but no consistent evidence of changes on the extensive employment margin. Intensive margin effects could be facilitated by decreased barriers to transportation—when a state covers vision services, beneficiaries are more likely to commute to work by car or motorcycle rather than other modes. Our study suggests that, conditional on eligibility, Medicaid can have a positive effect on labor market activity by expanding access to services that enable work.

JEL Classification:
  • I13
  • I18
  • J22
  • H75
  • Received November 2017.
  • Accepted July 2019.
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Journal of Human Resources: 56 (2)
Journal of Human Resources
Vol. 56, Issue 2
31 Mar 2021
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Medicaid Benefit Generosity and Labor Market Outcomes
Michel H. Boudreaux, Brandy J. Lipton
Journal of Human Resources Mar 2021, 56 (2) 539-569; DOI: 10.3368/jhr.56.2.1117-9193R2

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Medicaid Benefit Generosity and Labor Market Outcomes
Michel H. Boudreaux, Brandy J. Lipton
Journal of Human Resources Mar 2021, 56 (2) 539-569; DOI: 10.3368/jhr.56.2.1117-9193R2
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Keywords

  • I13
  • I18
  • J22
  • H75
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