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!
Researchers simplify tiny structures' construction drip by drip
12.11.2018 | Princeton University, Engineering School
Mandibular movement monitoring may help improve oral sleep apnea devices
06.11.2018 | Elsevier
Innsbruck quantum physicists have constructed a diode for magnetic fields and then tested it in the laboratory. The device, developed by the research groups led by the theorist Oriol Romero-Isart and the experimental physicist Gerhard Kirchmair, could open up a number of new applications.
Electric diodes are essential electronic components that conduct electricity in one direction but prevent conduction in the opposite one. They are found at the...
Max Planck researchers revel the nano-structure of molecular trains and the reason for smooth transport in cellular antennas.
Moving around, sensing the extracellular environment, and signaling to other cells are important for a cell to function properly. Responsible for those tasks...
Researchers at the University of New Hampshire have captured a difficult-to-view singular event involving "magnetic reconnection"--the process by which sparse particles and energy around Earth collide producing a quick but mighty explosion--in the Earth's magnetotail, the magnetic environment that trails behind the planet.
Magnetic reconnection has remained a bit of a mystery to scientists. They know it exists and have documented the effects that the energy explosions can...
Biochips have been developed at TU Wien (Vienna), on which tissue can be produced and examined. This allows supplying the tissue with different substances in a very controlled way.
Cultivating human cells in the Petri dish is not a big challenge today. Producing artificial tissue, however, permeated by fine blood vessels, is a much more...
Faster and secure data communication: This is the goal of a new joint project involving physicists from the University of Würzburg. The German Federal Ministry of Education and Research funds the project with 14.8 million euro.
In our digital world data security and secure communication are becoming more and more important. Quantum communication is a promising approach to achieve...
19.11.2018 | Event News
09.11.2018 | Event News
06.11.2018 | Event News
21.11.2018 | Life Sciences
21.11.2018 | Power and Electrical Engineering
21.11.2018 | Life Sciences