Research Results. The difference-in-differences methodology we relied on contrasted payday financing before and after California’s early Medicaid expansion into the state’s expansion counties versus nonexpansion counties nationwide.

to manage for confounding, time-varying factors that affect all counties at specific times (such as for instance recessions, holiday breaks, and seasonality), this process utilized nonexpansion counties, in Ca along with other states, as a control team.

Display 1 presents quotes associated with effect of Medicaid expansion in the overall number of payday lending, our main results; the table that is accompanying in Appendix Exhibit A4. 16 We discovered big general reductions in borrowing after the Medicaid expansion among individuals more youthful than age sixty-five. The number of loans removed per thirty days declined by 790 for expansion counties, compared to nonexpansion counties. Offered a preexpansion mean of 6,948 loans per that amounts to an 11 percent drop in the number of loans month. This decrease in loan amount equals a $172,000 decrease in borrowing cash and title loans per thirty days per county, from a mean of $1,644,000—a fall of ten percent. And 277 less borrowers that are unique county-month took down loans, which represents an 8 % decrease through the preexpansion mean of 3,603.

Display 1 aftereffect of early expansion of eligibility for Medicaid on month-to-month pay day loans for borrowers more youthful than age 65, 2009–13

Exhibit 2 presents the result of Medicaid expansion regarding the wide range of loans in three age groups: 18–34, 35–49, and 50–64; the accompanying table is in Appendix Exhibit A5. 16 The lowering of how many loans each month had been totally driven by borrowers more youthful than age fifty (the small enhance among older borrowers had not been significant). Continue reading