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eriu: Economic Research Initiative on the Uninsured Initiating and disemminating research to spark new policy discussion on health coverage issues.
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Author: Borjas, George
Working Paper: Welfare Reform, Labor Supply, and Health Insurance in the Immigrant Population (PDF) ; May 2003

Research Highlight 7 (HTML) (PDF) ; October 2004
Q & A with George Borjas, Ph.D. (HTML) ; October 2004
Research Findings (HTML)

Abstract:
Although the 1996 welfare reform legislation limited the eligibility of immigrant households to receive assistance, many states chose to protect their immigrant populations by offering state-funded aid to these groups. I exploit these changes in eligibility rules to examine the link between the welfare cutbacks and health insurance coverage in the immigrant population. The data reveal that the cutbacks in the Medicaid program did not reduce health insurance coverage rates among targeted immigrants. The immigrants responded by increasing their labor supply, thereby raising the probability of being covered by employer-sponsored health insurance.