How Do Medicaid Expansions Affect the Demand for Healthcare Workers? Evidence from Vacancy Postings

ABSTRACT

This study evaluates how healthcare employers’ staffing decisions and labor demand respond to increased Medicaid eligibility using a database of more than 14 million job vacancies for healthcare workers. The results indicate that increased Medicaid eligibility leads to healthcare employers posting more job vacancies and hiring additional healthcare workers. Healthcare employers that typically hire lower-skilled workers appear to be the most responsive to Medicaid expansions. These results imply that there are providers that respond to Medicaid patients’ needs but also highlight issues arising from Medicaid’s low reimbursement rates.