The immigrant provisions in PRWORA could potentially affect only a subset of the
immigrant population, depending on the immigrant’s state of residence, on the type of visa
used to enter the United States, and on the immigrant’s naturalization status. This variation
in eligibility rules can be exploited to examine how immigrants responded to the cutbacks
in public assistance. It turns out that the immigrants most adversely affected by PRWORA
significantly increased their labor supply, thereby raising the probability that they were
covered by employer-sponsored health insurance. In fact, the evidence indicates that the
increase in the number of immigrants covered by employer-sponsored health insurance was
large enough to completely offset the impact of the Medicaid cutbacks. The study, therefore