Does Medicaid Expansion Lead to Income Adjustment? Evidence from the Survey of Income Program Participation

Fuente: arXiv
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Autor principal: Li, Mingjian
Formato: Preprint
Publicado: 2025
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author Li, Mingjian
author_facet Li, Mingjian
contents Using monthly Survey of Income Program Participation (SIPP) data and a regression discontinuity (RD) design at the 138 percent Federal Poverty Line (FPL) threshold, this paper shows that childless adults in Medicaid expansion states lowered their lowest monthly earnings by about 39 FPL percentage points, equal to 700 dollars in 2025 for a two person household, to qualify for Medicaid. The response was largest when the individual mandate penalty was in effect and declined after the penalty was reduced to zero in 2019. Evidence from zero earnings months and hours worked indicates adjustments along both extensive and intensive margins. These results validate lowest monthly earnings as a practical eligibility measure and provide new evidence of substantial labor supply responses to the Affordable Care Act Medicaid notch.
format Preprint
id arxiv_https___arxiv_org_abs_2506_12976
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Does Medicaid Expansion Lead to Income Adjustment? Evidence from the Survey of Income Program Participation
Li, Mingjian
General Economics
Economics
Using monthly Survey of Income Program Participation (SIPP) data and a regression discontinuity (RD) design at the 138 percent Federal Poverty Line (FPL) threshold, this paper shows that childless adults in Medicaid expansion states lowered their lowest monthly earnings by about 39 FPL percentage points, equal to 700 dollars in 2025 for a two person household, to qualify for Medicaid. The response was largest when the individual mandate penalty was in effect and declined after the penalty was reduced to zero in 2019. Evidence from zero earnings months and hours worked indicates adjustments along both extensive and intensive margins. These results validate lowest monthly earnings as a practical eligibility measure and provide new evidence of substantial labor supply responses to the Affordable Care Act Medicaid notch.
title Does Medicaid Expansion Lead to Income Adjustment? Evidence from the Survey of Income Program Participation
topic General Economics
Economics
url https://arxiv.org/abs/2506.12976