Our research had not been in a position to straight connect specific insurance coverage status to payday borrowing.
Furthermore, although we discovered no proof of this, we’re able to maybe perhaps perhaps not rule out of the possibility that state- or county-level alterations in the legislation (or enforcement of laws) of pay day loans or any other industry modifications may have taken place in Ca when you look at the duration 2010вЂ“14. Nevertheless, the appropriateness was tested by us of y our approach in lot of methods. First, we stratified our models by age bracket (individuals more youthful or more than age sixty-five): Those in younger team could be beneficiaries regarding the Medicaid expansion, while those within the older team wouldn’t normally, simply because they could be qualified to receive Medicare. 2nd, we examined just just how alterations in payday financing diverse utilizing the share of uninsured individuals within the county before expansion: we might expect you’ll find payday loans Montana a better lowering of payday financing in areas with greater stocks compared to areas with reduced shares. Final, we carried out an вЂњevent studyвЂќ regression, described above, to assess any preexisting time styles in payday financing. Our extra methodology supplied reassuring proof that our findings were due to the Medicaid expansion.
The difference-in-differences methodology we relied on contrasted payday lending before and after CaliforniaвЂ™s early Medicaid expansion within the stateвЂ™s expansion counties versus nonexpansion counties nationwide. To regulate for confounding, time-varying facets that affect all counties at specific times (such as for example recessions, holiday breaks, and seasonality), this method utilized nonexpansion counties, in Ca as well as other states, as being a control team.
Display 1 presents estimates regarding the effect of Medicaid expansion in the general level of payday financing, our main results; the accompanying table is in Appendix Exhibit A4. 16 We discovered big general reductions in borrowing after the Medicaid expansion among individuals more youthful than age sixty-five.