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Did th Massachusetts Health Reform Program Increase Self-Employment?

Author

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  • Debdeep Chattopadhyay

    (DSEA, University of Padova)

Abstract

By providing affordable health insurance untied from employer provision, the Massachusetts Health Reform Program could increase self-employment. Previous studies have estimated both positive and negative effects of the reform on aggregate self-employment using difference-in-differences designs. In this study, I use the synthetic control methodology to confirm the absence of a statistically significant effect of the reform on aggregate self-employment. However, I do detect positive and significant short-run effects of the reform on the probability that individuals become incorporated self-employed. This effect is restricted to individuals 40 years old or younger. I also find that for employees in this age range the reform caused a significant wage reduction. This finding highlights that the higher reform-mandated health insurance coverage was at least in part financed by employees.

Suggested Citation

  • Debdeep Chattopadhyay, 2020. "Did th Massachusetts Health Reform Program Increase Self-Employment?," "Marco Fanno" Working Papers 0244, Dipartimento di Scienze Economiche "Marco Fanno".
    • Handle: RePEc:pad:wpaper:0244
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    More about this item

    Keywords

    Health Insurance; Self-Employment; Synthetic Control; Randomization Inference; Massachusetts Health Care Reform;
    All these keywords.

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

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