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

Abstract

This study evaluates how health care employers’ staffing decisions and labor demand respond to increased Medicaid eligibility using a database of over 14 million job vacancies for health care workers. The results indicate that increased Medicaid eligibility leads to health care employers posting more job vacancies and hiring additional health care workers. Health care 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.