The Effect of Medicaid on Children's Educational Attainment: Evidence from Chicago

Medicaid is a public health insurance program designed to shield poor children from the economic insecurity of sickness and improve their health. Recent evidence suggests that it may also have a lasting impact on non-health outcomes. I study a federal law that expanded Medicaid eligibility discontinuously for low-income children born after September 30, 1983. Using administrative data on students in Chicago Public Schools, I demonstrate that Medicaid enrollment increased significantly for those children likeliest to be affected by the expansion. I also offer suggestive evidence that these children were more likely to graduate high school, and that this effect is particularly strong for males. These findings suggest potentially large, long-term benefits to non-health outcomes from expanding children's access to health insurance.