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For simplicity, the regression specification in (1) uses a three-way classification of theimmigration status of the population (i.e., natives, naturalized citizens, and non-citizens). Iaccount for the immigrant’s refugee status as well as year of entry into the United Statesby including these characteristics as regressors in the vector X. The other socioeconomiccharacteristics in this vector include: the person’s age, gender, race, and educational attainment,the number of persons in the household, and the number of children, elderly persons,and disabled persons in the household.15 The regression also includes the state’s unemploymentrate at time t, as well as the unemployment rate interacted with the dummy variables in the immigration vector I. These interactions control for the possibility that immigrantoutcomes are more sensitive to the business cycle than those of natives (as well as net outany potential correlation between the generosity variable, G, and the state unemploymentrate 6 Because the generosity dummy variable is set to one for states that did not replacethe lost federal benefits, the coefficient vector θ in Eq. (1) measures the impact of the federalcutbacks on the relative trend in immigrant health coverage. In particular, it measures theextent to which the pre- and post-PRWORA change in coverage differs between states thatwere less generous and states that were more generous
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