The authors examine the effect of the Medicaid program on the labor supply and welfare participation decisions of female heads of family. A key contribution is the development of a family-specific proxy for the valuation of Medicaid benefits. The authors find that Medicaid has strong and...

The authors modify the basic self-sele ction model for the effects ofeducation, training, unions, and other activities on wages, by including "heterogeneity of rewards" to the activity-i.e., diffe rences across individuals in the rate of return to the activity. The authors sho w that such...