Spousal Labor Market Effects from Government Health Insurance: Evidence from a Veterans Affairs Expansion



Table 2

Effect of Insurance Receipt on Labor Supply Outcomes for Veterans

_______Not Working______

_________Part Time_________

_____Self Employed_______

(1)

(2)

(3)

(4)_____________

(5)

(6)

Panel I: Effects of Insurance Receipt

veteran*post

0.0058

0.0082*

0.0160**

0.0155**

-0.002

-0.0015

(0.0051)

(0.0035)

(0.0051)

(0.0050)

(0.0043)

(0.0046)

veteran

0.0164**

0.0311**

-0.0018

0.0038

-0.0350**

-0.0239**

(0.0039)

(0.0027)

(0.0038)

(0.0038)

(0.0040)

(0.0045)

Observations_________

41,440

41,440

26,605

26,605

41,440

41,440

Panel II: Falsification exercise:

1992-1993 = pre, 1994-1995 = post

veteran*fakep ost

-0.0145

-0.0067

0.0078

0.0048

0.0100

0.0078

(0.0079)

(0.0042)

(0.0080)

(0.0070)

(0.0070)

(0.0085)

veteran

0.0255**

0.0359**

-0.0053

0.0017

-0.0394**

-0.0275**

(0.0068)

(0.0041)

(0.0034)

(0.0039)

(0.0050)

(0.0061)

Full controls?

No

Ye s

N o

Ye s

N o

Ye s

State time trend?

No

Yes

No

Yes

No

Yes

Observations_________

18,722

18,722

________11,591

11,591_________

18,722

18,722

Notes: Coefficient estimates are taken from a probit regression as described in eq. (1). Marginal effects are reported. Regressions include age, race,
state, year and education dummies and a constant. Full controls include pension and health insurance receipt in the previous year for columns (1) and
(2) and current year in columns (3)-(6). The universe in Panel I includes the years 1992-2002 with 1996 and 1997 omitted. The universe in Panel II
includes years 1992-1995, with fakepost indicating the years 1994-1995. Robust standard errors in parentheses are clustered on veteran and year.

* significant at 5%; ** significant at 1%



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