The U.S. labor market is as healthy as it has been in a long time, especially for those with limited education and skills. Yet enrollment for the nation’s two largest means-tested safety-net programs, Medicaid and the Supplemental Nutrition Assistance Program, remains near historic highs.
In previous periods of rising employment and income, takeup rates in assistance programs dropped. This hasn’t been the case in the years following the Great Recession, even after accounting for ObamaCare’s expansion of Medicaid. What gives?