Health Insurance and Job Creation by the Self-Employed
AbstractNearly half of all companies surveyed by the National Federation of Independent Business's Education Foundation reported that health insurance costs were a critical problem. States regulate health insurance by mandating minimum levels of certain benefits as part of policies offered. In this paper, we evaluate the impact of state health insurance mandates on job creation by small firms, using data from the Survey of Income and Program Participation for 1993-95. Results from an ordered probit regression indicate that the greater the number of mandates in a state, the lower the probability that a self-employed person will hire additional people. These results hold when we consider both the sum of mandates as well as a cost weighted measure of the most expensive mandates. The predicted probability of owning a business with at least one employee decreases by nearly 10 percentage points as the number of mandates increases from 0 to 16.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Regulation2point0 in its series Working paper with number 375.
Date of creation: May 2006
Date of revision:
Contact details of provider:
Web page: http://regulation2point0.org/
Other versions of this item:
- Aparna Mathur, 2010. "Health insurance and job creation by the self-employed," Small Business Economics, Springer, vol. 35(3), pages 299-317, October.
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Burke, Andrew E & FitzRoy, Felix R & Nolan, Michael A, 2002.
" Self-Employment Wealth and Job Creation: The Roles of Gender, Non-pecuniary Motivation and Entrepreneurial Ability,"
Small Business Economics,
Springer, vol. 19(3), pages 255-70, November.
- Andrew E. Burke & Felix R. FitzRoy & Michael A. Nolan, 2000. "Self-Employment Wealth and Job Creation: The Roles of Gender, Non-Pecuniary Motivation and Entrepreneurial Ability," CRIEFF Discussion Papers 0006, Centre for Research into Industry, Enterprise, Finance and the Firm.
- Yannis Georgellis & Howard J. Wall, 2004.
"Entrepreneurship and the policy environment,"
2002-019, Federal Reserve Bank of St. Louis.
- Eric Bartelsman & Stefano Scarpetta & Fabiano Schivardi, 2005. "Comparative analysis of firm demographics and survival: evidence from micro-level sources in OECD countries," Industrial and Corporate Change, Oxford University Press, vol. 14(3), pages 365-391, June.
- Martin T. Robson & Colin Wren, 1999. "Marginal and Average Tax Rates and the Incentive for Self-Employment," Southern Economic Journal, Southern Economic Association, vol. 65(4), pages 757-773, April.
- Jonathan Gruber, 1992.
"State Mandated Benefits and Employer Provided Health Insurance,"
NBER Working Papers
4239, National Bureau of Economic Research, Inc.
- Gruber, J., 1992. "State Mandated Benefits and Employer Provided Health Insurance," Working papers 92-18, Massachusetts Institute of Technology (MIT), Department of Economics.
- Katherine Baicker & Helen Levy, 2008.
"Employer Health Insurance Mandates and the Risk of Unemployment,"
Risk Management and Insurance Review,
American Risk and Insurance Association, vol. 11(1), pages 109-132, 03.
- Katherine Baicker & Helen Levy, 2007. "Employer Health Insurance Mandates and the Risk of Unemployment," NBER Working Papers 13528, National Bureau of Economic Research, Inc.
- Steven J. Davis & John Haltiwanger & Scott Schuh, 1993.
"Small Business and Job Creation: Dissecting the Myth and Reassessing theFacts,"
NBER Working Papers
4492, National Bureau of Economic Research, Inc.
- Davis, Steven J & Haltiwanger, John & Schuh, Scott, 1996. " Small Business and Job Creation: Dissecting the Myth and Reassessing the Facts," Small Business Economics, Springer, vol. 8(4), pages 297-315, August.
- Cowling, Marc & Mitchell, Peter, 1997. "The Evolution of U.K. Self-Employment: A Study of Government Policy and the Role of the Macroeconomy," The Manchester School of Economic & Social Studies, University of Manchester, vol. 65(4), pages 427-42, September.
- Evans, David S & Jovanovic, Boyan, 1989. "An Estimated Model of Entrepreneurial Choice under Liquidity Constraints," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 808-27, August.
- Robert Kaestner & Kosali Ilayperuma Simon, 2002. "Labor market consequences of state health insurance regulation," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 56(1), pages 136-159, October.
- Aki Kangasharju & Sari Pekkala, 2001. "The Role of Education in Self-Employment Success," Studies in Economics 0116, Department of Economics, University of Kent.
- Marc Cowling & Mark Taylor & Peter Mitchell, 2004. "Job Creators," Manchester School, University of Manchester, vol. 72(5), pages 601-617, 09.
- Sobel, Russell S., 2008.
"Testing Baumol: Institutional quality and the productivity of entrepreneurship,"
Journal of Business Venturing,
Elsevier, vol. 23(6), pages 641-655, November.
- Russell S. Sobel, 2006. "Testing Baumol: Institutional Quality and the Productivity of Entrepreneurship," Working Papers 06-06 Classification-, Department of Economics, West Virginia University.
- Gruber, Jonathan, 1994. "State-mandated benefits and employer-provided health insurance," Journal of Public Economics, Elsevier, vol. 55(3), pages 433-464, November.
- Douglas Holtz-Eakin & John R. Penrod & Harvey S. Rosen, 1994.
"Health Insurance and the Supply of Entrepreneurs,"
NBER Working Papers
4880, National Bureau of Economic Research, Inc.
- Nigel Meager & Peter Bates & Marc Cowling, 2003. "An Evaluation of Business Start-Up Support for Young People," National Institute Economic Review, National Institute of Economic and Social Research, vol. 186(1), pages 59-72, October.
- Andrew Henley, 2005. "Job Creation by the Self-employed: The Roles of Entrepreneurial and Financial Capital," Small Business Economics, Springer, vol. 25(2), pages 175-196, 09.
- Fan, Wei & White, Michelle J, 2003. "Personal Bankruptcy and the Level of Entrepreneurial Activity," Journal of Law and Economics, University of Chicago Press, vol. 46(2), pages 543-67, October.
- Bruce D. Meyer, 1990. "Why Are There So Few Black Entrepreneurs?," NBER Working Papers 3537, National Bureau of Economic Research, Inc.
- Robert Carroll & Douglas Holtz-Eakin & Mark Rider & Harvey S. Rosen, 2000. "Income Taxes and Entrepreneurs' Use of Labor," NBER Working Papers 6578, National Bureau of Economic Research, Inc.
- Evans, David S & Leighton, Linda S, 1989. "Some Empirical Aspects of Entrepreneurship," American Economic Review, American Economic Association, vol. 79(3), pages 519-35, June.
- André van Stel & José Maria Millán & Concepcion Roman & Ana Millán, 2013.
"How does employment protection legislation influence hiring and firing decisions by the smallest firms?,"
Scales Research Reports
H201216, EIM Business and Policy Research.
- Millán, Ana & Millán, José María & Román, Concepción & van Stel, André, 2013. "How does employment protection legislation influence hiring and firing decisions by the smallest firms?," Economics Letters, Elsevier, vol. 121(3), pages 444-448.
- José María Millán & Emilio Congregado & Concepción Román, 2010. "Determinants of Self-Employment Dynamics and their Implications on Entrepreneurial Policy Effectiveness," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 72, pages 45-76.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Archive Maintainer).
If references are entirely missing, you can add them using this form.