Dynamics of Children Poverty and Health Insurance Coverage: An Evaluation on the Impact of Welfare Reform

Hsien-Hen Lu, Columbia University

In this study, I document changes in expected childhood years without health insurance, under poverty, or both by using the longitudinal data from the Census Bureau's Survey of Income and Program Participation (SIPP). In order to estimate dynamics of poverty and uninsured childhood together, I apply multi-state life tables. Semi-parametric Cox models will be used to identify net effects of changes in social policies, demographic factors, and business cycles on the odds of being uninsured, and being poor. Preliminary results based on pooled 1985-1996 panels of SIPP data confirmed previous findings on a substantial drop in health insurance coverage during that period. While the decline in insurance was not more serious for children under poverty, the decline in Medicaid after welfare reform reduced the opportunity for poor children being insured. Empirical evidence also shows that children of low educational achievement parents are facing more economic disadvantage after the welfare reform.