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

Author

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  • Zhuan Pei

    (Cornell University)

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.

Suggested Citation

  • Zhuan Pei, 2015. "Eligibility Recertification and Dynamic Opt-in Incentives in Income-tested Social Programs: Evidence from Medicaid/CHIP," Upjohn Working Papers 15-234, W.E. Upjohn Institute for Employment Research.
    • Handle: RePEc:upj:weupjo:15-234
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    Cited by:

    1. Colin Gray, 2018. "Why Leave Benefits on the Table? Evidence from SNAP," Upjohn Working Papers 18-288, W.E. Upjohn Institute for Employment Research.
    2. David S. Lee & Pauline Leung & Christopher J. O’Leary & Zhuan Pei & Simon Quach, 2021. "Are Sufficient Statistics Necessary? Nonparametric Measurement of Deadweight Loss from Unemployment Insurance," Journal of Labor Economics, University of Chicago Press, vol. 39(S2), pages 455-506.
    3. Tatiana Homonoff & Jason Somerville, 2021. "Program Recertification Costs: Evidence from SNAP," American Economic Journal: Economic Policy, American Economic Association, vol. 13(4), pages 271-298, November.
    4. Julie Shi, 2016. "Income Responses to Health Insurance Subsidies: Evidence from Massachusetts," American Journal of Health Economics, MIT Press, vol. 2(1), pages 96-124, January.
    5. Konstantin Kunze, 2022. "Public Health Insurance of Children and Parental Labor Market Outcomes," Working Papers 349, University of California, Davis, Department of Economics.
    6. Gray, Colin, 2019. "Leaving benefits on the table: Evidence from SNAP," Journal of Public Economics, Elsevier, vol. 179(C).

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    More about this item

    Keywords

    Labor supply; Medicaid; CHIP; continuous eligibility; recertification;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General

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