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Did the Massachusetts Health Reform Program increase self-employment?

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  • Debdeep Chattopadhyay

    (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, 2023. "Did the Massachusetts Health Reform Program increase self-employment?," Empirical Economics, Springer, vol. 65(3), pages 1309-1344, September.
    • Handle: RePEc:spr:empeco:v:65:y:2023:i:3:d:10.1007_s00181-023-02369-y
    DOI: 10.1007/s00181-023-02369-y
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    Full references (including those not matched with items on IDEAS)

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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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