Eligibility Recertification and Dynamic Opt-in Incentives in Income-tested Social Programs: Evidence from Medicaid/CHIP

No 15-234, Upjohn Working Papers from W.E. Upjohn Institute for Employment Research

Abstract: Conventional labor supply studies assume constant eligibility monitoring of income-tested program participants, but this is not true for most programs. For example, states can allow children to enroll in Medicaid/CHIP for 12 months regardless of family income changes. A long recertification period reduces monitoring costs but is predicted to induce program participation by temporary income adjustments. However, I find little evidence of strategic behavior from the 2001 and 2004 Survey of Income and Program Participation. Given the lack of dynamic responses, I propose a framework to compute the optimal recertification period and find 12 months to be its lower bound.

Keywords: Labor supply; Medicaid; CHIP; continuous eligibility; recertification (search for similar items in EconPapers)
JEL-codes: I38 J20 (search for similar items in EconPapers)
Date: 2015-08
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Eligibility Recertification and Dynamic Opt-In Incentives in Income-Tested Social Programs: Evidence from Medicaid/CHIP (2017)
Working Paper: Eligibility Recertification and Dynamic Opt-in Incentives in Income-tested Social Programs: Evidence from Medicaid/CHIP (2013)
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