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Long-Term Impacts of Childhood Medicaid Expansions on Outcomes in Adulthood

Author

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  • David W Brown
  • Amanda E Kowalski
  • Ithai Z Lurie

Abstract

We use administrative data from the Internal Revenue Service to examine long-term impacts of childhood Medicaid eligibility expansions on outcomes in adulthood at each age from 19 to 28. Greater Medicaid eligibility increases college enrolment and decreases fertility, especially through age 21. Starting at age 23, females have higher contemporaneous wage income, although male increases are imprecise. Together, both genders have lower mortality. These adults collect less from the earned income tax credit and pay more in taxes. Cumulatively from ages 19 to 28, at a 3% discount rate, the federal government recoups 58 cents of each dollar of its “investment” in childhood Medicaid.

Suggested Citation

  • David W Brown & Amanda E Kowalski & Ithai Z Lurie, 2020. "Long-Term Impacts of Childhood Medicaid Expansions on Outcomes in Adulthood," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 87(2), pages 792-821.
    • Handle: RePEc:oup:restud:v:87:y:2020:i:2:p:792-821.
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    File URL: http://hdl.handle.net/10.1093/restud/rdz039
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    Cited by:

    1. Alex Hollingsworth & Krzysztof Karbownik & Melissa A. Thomasson & Anthony Wray, 2024. "The Gift of a Lifetime: The Hospital, Modern Medicine, and Mortality," American Economic Review, American Economic Association, vol. 114(7), pages 2201-2238, July.
    2. Erkmen G. Aslim & Wei Fu & Chia-Lun Liu & Erdal Tekin, 2022. "Vaccination Policy, Delayed Care, and Health Expenditures," NBER Working Papers 30139, National Bureau of Economic Research, Inc.
    3. Olukorede Abiona & Joseph B. Ajefu, 2023. "The impact of timing of in utero drought shocks on birth outcomes in rural households: evidence from Sierra Leone," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(3), pages 1333-1362, July.
    4. Huang, Wei & Liu, Hong, 2023. "Early childhood exposure to health insurance and adolescent outcomes: Evidence from rural China," Journal of Development Economics, Elsevier, vol. 160(C).
    5. Lee, Ines, 2024. "Co-benefits from health and health systems to education," Health Policy, Elsevier, vol. 142(C).
    6. Krzysztof Karbownik & Anthony Wray, 2019. "Educational, Labor-market and Intergenerational Consequences of Poor Childhood Health," NBER Working Papers 26368, National Bureau of Economic Research, Inc.
    7. Simon, David & Sojourner, Aaron & Pedersen, Jon & Ombisa Skallet, Heidi, 2024. "Financial Incentives for Adoption and Kin Guardianship Improve Achievement for Foster Children," IZA Discussion Papers 17057, Institute of Labor Economics (IZA).
    8. Vaughn, Cody N., 2023. "Welfare reform and childhood health status and utilization," Children and Youth Services Review, Elsevier, vol. 150(C).
    9. Hull, Marie C. & Yan, Ji, 2024. "The Impact of Children's Access to Public Health Insurance on Their Cognitive Development and Behavior," IZA Discussion Papers 17190, Institute of Labor Economics (IZA).
    10. David Simon & Aaron Sojourner & Jon Pedersen & Heidi Ombisa Skallet, 2024. "Financial Incentives for Adoption and Kin Guardianship Improve Achievement for Foster Children," Upjohn Working Papers 24-401, W.E. Upjohn Institute for Employment Research.
    11. Yusuke Narita & Kohei Yata, 2021. "Algorithm is Experiment: Machine Learning, Market Design, and Policy Eligibility Rules," Working Papers 2021-022, Human Capital and Economic Opportunity Working Group.
    12. Britta Rude, 2024. "Middle-run educational impacts of comprehensive early childhood interventions: evidence from a pioneer program in Chile," Journal of Population Economics, Springer;European Society for Population Economics, vol. 37(2), pages 1-30, June.
    13. Britta Rude, 2022. "Middle-run Impacts of Comprehensive Early Childhood Interventions: Evidence from a Pioneer Program in Chile," ifo Working Paper Series 384, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    14. Seonghoon Kim & Kanghyock Koh, 2022. "Health insurance and subjective well‐being: Evidence from two healthcare reforms in the United States," Health Economics, John Wiley & Sons, Ltd., vol. 31(1), pages 233-249, January.
    15. Carolyn J. Heinrich & Sayil Camacho & Sarah Clark Henderson & Mónica Hernández & Ela Joshi, 2022. "Consequences of Administrative Burden for Social Safety Nets that Support the Healthy Development of Children," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 41(1), pages 11-44, January.
    16. Narita, Yusuke & Yata, Kohei, 2022. "Algorithm is Experiment: Machine Learning, Market Design, and Policy Eligibility Rules," CEI Working Paper Series 2021-05, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    17. Beuermann, Diether W. & Pecha, Camilo J., 2020. "The effect of eliminating health user fees on adult health and labor supply in Jamaica," Journal of Health Economics, Elsevier, vol. 73(C).
    18. Bastian, Jacob & Bian, Luorao & Grogger, Jeffrey, 2022. "How Did Safety-Net Reform Affect the Education of Adolescents from Low-Income Families?," Labour Economics, Elsevier, vol. 77(C).
    19. Narita, Yusuke & Yata, Kohei, 2022. "Algorithm is Experiment: Machine Learning, Market Design, and Policy Eligibility Rules," Discussion Paper Series 730, Institute of Economic Research, Hitotsubashi University.
    20. Noghanibehambari, Hamid & Engelman, Michal, 2022. "Social insurance programs and later-life mortality: Evidence from new deal relief spending," Journal of Health Economics, Elsevier, vol. 86(C).

    More about this item

    Keywords

    Health insurance; Effects of public programs;

    JEL classification:

    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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