Childhood Medicaid Eligibility and Human Capital

Abstract

Abstract Although a sizeable literature studies the effect of Medicaid on health, less is known about its effects on education. We use a discontinuity in Medicaid eligibility based on date of birth and administrative school records to study the effects of expanded Medicaid eligibility during middle childhood, between the ages of 8 and 11. We evaluate effects of this Medicaid expansion on outcomes measured a few years later when the children are 12-14 years old. We find that it is associated with a significant increase in the grade that children are in and a reduction in the likelihood that a child is below grade for age. We do not find any evidence for effects on documented disabilities or absences. Our results underscore that Medicaid has important effects on children s human capital.