| dc.description.abstract | This dissertation introduces three essays about the employment of low-income workers, a group whose employment has large implications for economic growth, tax revenue, and government spending on means-tested transfer programs. The first two essays in this dissertation analyze the causal impact of two of these transfer programs, the Earned Income Tax Credit and Medicaid, on employment decisions. The third essay provides a descriptive analysis of the job mobility of low-wage workers.
The first essay “Employment Effects of the Earned Income Tax Credit for Childless Adults” analyzes the employment and labor supply effects of state expansions of the Earned Income Tax Credit for childless adults, a group who has been at the center of policy discussions. The Earned Income Tax Credit was designed to assist low-income households while also encouraging work. I find that state expansions of the Earned Income Tax Credit led to increases in employment and labor force participation for childless women and declines for men. Employment increases were largest for women age 25-34 and employment declines were largest for older men, age 55-64.
The second essay “Public Insurance and Retirement Decisions”, joint work with Laura Dague and Marguerite Burns, analyzes the effect of state Medicaid expansions on retirement decisions. In the last two decades, many states have extended public insurance by eliminating categorical eligibility requirements for Medicaid such as disability or responsibility for a dependent child. The availability of public health insurance can affect retirement-related decisions for adults who value these benefits highly. We find that public insurance access led to delays in retirement and Social Security claims until age 65, the age at which Medicare, public health insurance for all elderly, becomes available.
The third and final essay “Occupational and Industry Mobility of Low-Wage Worker”, joint work with Jonathan Meer, studies the occupation and industry mobility of low-wage workers. We find that low-wage workers switch both occupation and industry frequently. Occupation switches are more common than industry switches, but the majority of mobility is explained by simultaneous switching of both industry and occupation. | |
