The effects of the affordable care act on labor supply and other uses of time

A vast literature studies the behavioral impacts of health care reforms, often coming to controversial conclusions. Here we examine the time allocation effects of the Affordable Care Act, also known as Obama Care, focusing on two pillars, namely Medicaid expansion, which increased access to public health insurance, and the Tax Credit Premium, subsidizing the purchase of private health insurance. Using 2012–2015 daily diary data from the American Time Use Survey, we take a difference-in-difference-in-differences approach, which exploits the cross-state variation in the timing of ACA implementation, together with differences in income eligibility thresholds, to identify the effects at stake. Considering a sample of childless adults aged 27–64, a group not eligible for public health insurance before ACA, we find that the Medicaid expansion reduced their labor supply by over an hour per day, increasing part-time work, while the Premium Tax Credit is associated with a slight increase in employment levels. The implications for other uses of time are also analyzed.

Authors

Institutions

Publication Details

Journal
Economia Politica
Published
2026-01-06
DOI
https://doi.org/10.1007/s40888-025-00389-8
Primary Topic
Healthcare Policy and Management
Type
article
Field-Weighted Citation Impact
0.00

Funders

Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

The effects of the affordable care act on labor supply and other uses of time

Elena Stancanelli, Anna Bottasso, G. Cerruti, Maurizio Conti
Economia Politica
Healthcare Policy and Management
article

The effects of the affordable care act on labor supply and other uses of time

Elena Stancanelli, Anna Bottasso, G. Cerruti, Maurizio Conti
article en

Abstract

A vast literature studies the behavioral impacts of health care reforms, often coming to controversial conclusions. Here we examine the time allocation effects of the Affordable Care Act, also known as Obama Care, focusing on two pillars, namely Medicaid expansion, which increased access to public health insurance, and the Tax Credit Premium, subsidizing the purchase of private health insurance. Using 2012–2015 daily diary data from the American Time Use Survey, we take a difference-in-difference-in-differences approach, which exploits the cross-state variation in the timing of ACA implementation, together with differences in income eligibility thresholds, to identify the effects at stake. Considering a sample of childless adults aged 27–64, a group not eligible for public health insurance before ACA, we find that the Medicaid expansion reduced their labor supply by over an hour per day, increasing part-time work, while the Premium Tax Credit is associated with a slight increase in employment levels. The implications for other uses of time are also analyzed.

Economia Politica
Centre National de la Recherche Scientifique (FR), IZA - Institute of Labor Economics (DE), Directorate-General for International Cooperation and Development (BE), Centre National pour la Recherche Scientifique et Technique (CNRST) (MA), University of Genoa (IT), London School of Economics and Political Science (GB)
Università degli Studi di Genova
Decent work and economic growth
Openalex Percentile: Top 96%
Healthcare Policy and Management
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.