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Tax Incentives as a Solution to the Uninsured: Evidence from the Self-Employed

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Author Info

  • Tracy L. Regan

    ()
    (Department of Economics, University of Miami)

  • Gulcin Gumus

    ()
    (Department of Health and Policy & Management and Department of Economics, Florida International University)

Abstract

Between 1996 and 2003, a series of amendments were made to the Tax Reform Act of 1986 that gradually increased the tax credit for health insurance purchases by the self- employed from 25 to 100 percent. We study how these changes have in uenced the likelihood that a self-employed person has health insurance coverage as the policy holder. The Cur- rent Population Survey is used to construct a data set corresponding to 1995-2005. Both the di erence-in-di erence and price elasticity of demand estimates suggest that the series of tax credits did not provide sucient incentives for the self-employed to obtain health insurance coverage.

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File URL: http://moya.bus.miami.edu/~tregan/Insurance.pdf
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Bibliographic Info

Paper provided by University of Miami, Department of Economics in its series Working Papers with number 0709.

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Length: 42 pages
Date of creation: May 2006
Date of revision: Oct 2007
Publication status: Forthcoming: Under Review
Handle: RePEc:mia:wpaper:0709

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Phone: (305) 284-5540
Fax: (305) 284-2985
Web page: http://www.bus.miami.edu/faculty-and-research/academic-departments/economics/index.html
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Related research

Keywords: Health insurance; self-employment; elasticity; CPS;

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References

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  1. Donna B. Gilleskie & Byron F. Lutz, 2002. "The Impact of Employer-Provided Health Insurance on Dynamic Employment Transitions," Journal of Human Resources, University of Wisconsin Press, vol. 37(1), pages 129-162.
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  5. Melissa A. Thomasson, 2003. "The Importance of Group Coverage: How Tax Policy Shaped U.S. Health Insurance," American Economic Review, American Economic Association, vol. 93(4), pages 1373-1384, September.
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  22. Heim, Bradley T. & Lurie, Ithai Z., 2009. "Do increased premium subsidies affect how much health insurance is purchased? Evidence from the self-employed," Journal of Health Economics, Elsevier, vol. 28(6), pages 1197-1210, December.
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Citations

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Cited by:
  1. Gulcin Gumus & Tracy Regan, 2007. "Self-Employment and the Role of Health Insurance," Working Papers 0910, University of Miami, Department of Economics.
  2. Velamuri, Malathi, 2009. "Taxes, Health Insurance and Women’s Self-Employment," MPRA Paper 15731, University Library of Munich, Germany.
  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. Heim, Bradley T. & Lurie, Ithai Z., 2009. "Do increased premium subsidies affect how much health insurance is purchased? Evidence from the self-employed," Journal of Health Economics, Elsevier, vol. 28(6), pages 1197-1210, December.
  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.

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