The Effect of Affordable Care Act Medicaid Expansions on Household Composition

Abstract

Prior research has shown improvements in low-income individuals' financial well-being as a consequence of the Affordable Care Act's Medicaid expansion. Given the connection between financial well-being and housing, we investigate the extent to which the provision of Medicaid to previously ineligible, low-income childless adults affects their household composition. Using a staggered adoption difference-in-differences design on an urban sample of individuals with less than a high school degree, we find that 26 to 39 year olds experience a significant 4.2% decline in the number of individuals living in the household, which is due to living with fewer extended family members. At the same time, 26 to 39 year olds experience a relatively smaller decline in the number of rooms (1.8%), leading to a 3.1% reduction in the level of household crowding, as measured by persons per bedroom. These reductions in household crowding are strongest for Hispanic individuals and those living in areas with above-median housing costs. In comparison, there are no significant impacts on household composition for 40 to 64 year olds as a consequence of the policy.