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SITE SEMINAR WITH YULIYA KULIKOVA

Each year the U.S. government spends about 2% of its GDP on Medicaid, its main means-tested health insurance program. In June 2013, over 28 million children were enrolled in Medicaid. What are the implications of such a large-scale policy intervention for intergenerational mobility and inequality?

Yuliya Kulikova will present her working paper "Health Policies and Intergenerational Mobility" at the brown bag seminar at SITE.

Yuliya Kulikova is a Research Economist in the Microeconomic Analysis Division of the Bank of Spain. She received her PhD from the International Doctorate in Economic Analysis, jointly organized by the Universitat Autònoma de Barcelona and Barcelona Graduate School of Economics. Her research interests of area are Quantitative Macroeconomics, Applied Microeconometrics, Inequality, Labor Economics, Family Economics, Health.

Interested in finding out more about Yuliya Kulikova? Visit her website.

Abstract

Each year the U.S. government spends about 2% of its GDP on Medicaid, its main means-tested health insurance program. In June 2013, over 28 million children were enrolled in Medicaid. What are the implications of such a large-scale policy intervention for intergenerational mobility and inequality? While the role of education and education policies received a lot of attention in the literature on intergenerational mobility, almost nothing is known on how medical policies affect intergenerational mobility and inequality. This is rather surprising, since health, like education, is highly persistent across generations and health of children have an important impact on how they perform in school. In this paper, I develop and estimate a human-capital based overlapping generations model of household decisions that take into account multidimensionality and dynamic nature of human capital investments. I distinguish two forms of human capital: health capital and human capital, and model explicitly government policies in education and health. The counterfactual simulations show that health policies is an important determinant of intergenerational mobility of income across generations for agents of the bottom of income distribution and there are important interactions between health and education policies.

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