Full Citation

Title: Labour market returns to health capital during childhood: Evidence from Medicaid introduction

Citation Type: Journal Article

Publication Year: 2021

ISBN:

ISSN: 0013-3264

DOI: 10.2298/EKA2129099N

NSFID:

PMCID:

PMID:

Abstract: Health capital development during childhood can affect later-life outcomes. This paper examines the long-term effects of the introduction of Medicaid during the 1960s as one of the earliest attempts in US history to provide publicly financed health insurance for the poor. Using a large panel dataset and a difference-in-differences- in-differences identification strategy, I show that exposure to Medicaid during ages 0-5 has sizable and significant effects on economic and non-economic outcomes throughout ages 25-55, including income, employment, education, disability, and wealth. Exposure to Medicaid among fully eligible cohorts is associated with roughly 0.4 percentage higher wage income, equivalent to an increase of $145 above the mean of annual wages. It also implies a minimum of 7.8% externality of the programme in labour market wages.

Url: https://doi.org/10.2298/EKA2129099N

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Authors: Noghanibehambari, Hamid

Periodical (Full): Economic Annals

Issue: 229

Volume: 66

Pages: 99-118

Data Collections: IPUMS USA, IPUMS NHGIS

Topics: Population Health and Health Systems

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