Impact of the ACA’s Dependent Coverage Mandate on Health Insurance and Labor Market Outcomes Among Young Adults: Evidence from Regression Discontinuity Design
This paper identifies the effect of the Affordable Care Act’s dependent coverage mandate on health insurance coverage and labor market outcomes among young adults by exploiting the discrete change in health insurance coverage at age 26. Using a regression discontinuity design, we find that aging out from the ACA’s dependent coverage mandate is associated with up to a 4.2-percentage-point decrease in private insurance coverage at age 26. We also find that aging out from the mandate is significantly associated with an increase in the probability of being employed. However, we do not find any significant changes in hourly wage, weekly working hours or job mobility at age 26.
JEL ClassificationI13 I180 J38
KeywordsHealth insurance ACA’s dependent coverage mandate Employment Job mobility Regression discontinuity design
We thank the participants in the special session at Eastern Economic Association 44th Annual Conference at Boston, MA, and three anonymous referees for their valuable and helpful comments.
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