Reducing the Welfare Dependence of Unmarried Mothers: Health-Related Employment Barriers and Policy Responses

In this paper, I examine the importance of health insurance and health status to the employment decisions of single mothers. Using results from an employment probit model, I simulate the likely employment effects of four changes to public and private health insurance policy, including the elimination of Medicaid and mandated employer coverage for full time workers. The employer mandate causes an 11.5 percent increase in the probability of employment of single mothers, while eliminating all Medicaid coverage stimulates a 24 percent increase in work for low income single mothers. Poor maternal and child health are barriers to employment as well.