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Health Insurance Coverage And Entrepreneurship

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  • Alison J. Wellington
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    Abstract

    This article estimates the importance of health insurance coverage on the probability of self-employment. Using data from the 1993 Current Population Survey (CPS), the author focuses on the impact of having health insurance through one's spouse on the likelihood of self-employment. The best estimates suggest that a guaranteed alternative source of health insurance would increase the probability of self-employment between 2.3 and 4.4 percentage points for husbands and 1.2 and 4.6 percentage points for wives. The author's more conservative estimates suggest that universal coverage could increase the percentage of self-employed in the workforce by 2 to 3.5 percentage points. Copyright 2001 Western Economic Association International.

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    File URL: http://www.blackwell-synergy.com/doi/abs/10.1093/cep/19.4.465
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    Bibliographic Info

    Article provided by Western Economic Association International in its journal Contemporary Economic Policy.

    Volume (Year): 19 (2001)
    Issue (Month): 4 (October)
    Pages: 465-478

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    Handle: RePEc:bla:coecpo:v:19:y:2001:i:4:p:465-478

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    Cited by:
    1. Zissimopoulos, Julie M. & Karoly, Lynn A., 2007. "Transitions to self-employment at older ages: The role of wealth, health, health insurance and other factors," Labour Economics, Elsevier, vol. 14(2), pages 269-295, April.
    2. Velamuri, Malathi, 2009. "Taxes, Health Insurance and Women's Self-Employment," MPRA Paper 50474, University Library of Munich, Germany, revised Apr 2012.
    3. Robert W Fairlie & Kanika Kapur & Susan Gates, 2010. "Is Employer-Based Health Insurance a Barrier to Entrepreneurship?," Working Papers 200903, School Of Economics, University College Dublin.
    4. Wellington, Alison J., 2006. "Self-employment: the new solution for balancing family and career?," Labour Economics, Elsevier, vol. 13(3), pages 357-386, June.
    5. Heim, Bradley T. & Lurie, Ithai Z., 2010. "The effect of self-employed health insurance subsidies on self-employment," Journal of Public Economics, Elsevier, vol. 94(11-12), pages 995-1007, December.
    6. Chu-Shiu Li & Chwen-Chi Liu & Yu-Chen Kuo & Chen-Sheng Yang, 2013. "Health insurance provision and labor contracts for small firms," Small Business Economics, Springer, vol. 40(2), pages 325-334, February.
    7. Scott Shane, 2009. "Why encouraging more people to become entrepreneurs is bad public policy," Small Business Economics, Springer, vol. 33(2), pages 141-149, August.

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