Some commentators have suggested that the absence of portable health insurance impedes people from leaving their jobs to start new firms. We investigate this belief by comparing wage-earners who become self-employed during a given period of time with their counterparts who do not. By examining the impact of variables relating to the health insurance and health status of these workers and their families, we can infer whether the lack of health insurance portability affects the probability that they become self-employed. The evidence does not support the conjecture that the current health insurance system affects the propensity to become self-employed. Hence, whatever its other merits, there is no reason to believe that the introduction of universal health insurance would significantly enhance entrepreneurial activity.
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number
4880.
Length: Date of creation: Oct 1994 Date of revision: Handle: RePEc:nbr:nberwo:4880
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Find related papers by JEL classification: J6 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
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