A new study finds that children who received expanded Medicaid benefits in the 1980s and 1990s contributed more to the U.S. tax system as adults. They also were more likely to attend college and less likely to die prematurely in adulthood.
The study is based on an analysis of tax returns for nearly all children born in the United States from 1981 to 1984. It compared children from similar backgrounds who were eligible for Medicaid for different lengths of time, depending on where and when they were born.
Medicaid, which began in 1965, is a public health insurance program for low-income people. It expanded dramatically in the 1980s and again in the 1990s, with the establishment of the State Children's Health Insurance Program. Historically, states have set different eligibility thresholds for Medicaid.
Yale University economist Amanda Kowalski, one of the study's co-authors, said the research has implications for today's Medicaid landscape, as well.
"Although it will take years to know the long-term impact of current expansions of Medicaid undertaken as part of the Affordable Care Act, this study shows that the investments that the government made in Medicaid in the 1980s and 1990s are paying off in the form of higher tax payments now," Kowalski said.
According to the study, the federal government recouped 14 cents for each dollar spent on childhood Medicaid by the time the children reached age 28. Assuming these higher tax payments persist, the federal government would recoup 56 cents on each dollar by the time these children reach age 60.
Children eligible for more years of Medicaid made higher combined income and payroll tax payments as adults, the study found. They also collected less from the Earned Income Tax Credit, and females had higher cumulative wages.
In addition to Kowalski, who also is affiliated with the National Bureau of Economic Research (NBER), the study's co-authors are David Brown and Ithai Lurie, from the Office of Tax Analysis at the U.S. Department of the Treasury. The study was released Jan. 12 as an NBER Working Paper.
The findings, interpretations, and conclusions expressed in the study are entirely those of the authors and do not necessarily represent the views of the U.S. Department of the Treasury.
Jim Shelton | EurekAlert!
Multi-year study finds 'hotspots' of ammonia over world's major agricultural areas
17.03.2017 | University of Maryland
Diabetes Drug May Improve Bone Fat-induced Defects of Fracture Healing
17.03.2017 | Deutsches Institut für Ernährungsforschung Potsdam-Rehbrücke
Astronomers from Bonn and Tautenburg in Thuringia (Germany) used the 100-m radio telescope at Effelsberg to observe several galaxy clusters. At the edges of these large accumulations of dark matter, stellar systems (galaxies), hot gas, and charged particles, they found magnetic fields that are exceptionally ordered over distances of many million light years. This makes them the most extended magnetic fields in the universe known so far.
The results will be published on March 22 in the journal „Astronomy & Astrophysics“.
Galaxy clusters are the largest gravitationally bound structures in the universe. With a typical extent of about 10 million light years, i.e. 100 times the...
Researchers at the Goethe University Frankfurt, together with partners from the University of Tübingen in Germany and Queen Mary University as well as Francis Crick Institute from London (UK) have developed a novel technology to decipher the secret ubiquitin code.
Ubiquitin is a small protein that can be linked to other cellular proteins, thereby controlling and modulating their functions. The attachment occurs in many...
In the eternal search for next generation high-efficiency solar cells and LEDs, scientists at Los Alamos National Laboratory and their partners are creating...
Silicon nanosheets are thin, two-dimensional layers with exceptional optoelectronic properties very similar to those of graphene. Albeit, the nanosheets are less stable. Now researchers at the Technical University of Munich (TUM) have, for the first time ever, produced a composite material combining silicon nanosheets and a polymer that is both UV-resistant and easy to process. This brings the scientists a significant step closer to industrial applications like flexible displays and photosensors.
Silicon nanosheets are thin, two-dimensional layers with exceptional optoelectronic properties very similar to those of graphene. Albeit, the nanosheets are...
Enzymes behave differently in a test tube compared with the molecular scrum of a living cell. Chemists from the University of Basel have now been able to simulate these confined natural conditions in artificial vesicles for the first time. As reported in the academic journal Small, the results are offering better insight into the development of nanoreactors and artificial organelles.
Enzymes behave differently in a test tube compared with the molecular scrum of a living cell. Chemists from the University of Basel have now been able to...
20.03.2017 | Event News
14.03.2017 | Event News
07.03.2017 | Event News
24.03.2017 | Materials Sciences
24.03.2017 | Physics and Astronomy
24.03.2017 | Physics and Astronomy