Health Insurance Coverage and Entrepreneurship

ArticleinContemporary Economic Policy 19(4):465-78 · February 2001with101 Reads
DOI: 10.1093/cep/19.4.465 · Source: RePEc
This article estimates the importance of health insurance coverage on the probability of self-employment. Using data from the 1993 Current Population Survey (CPS), the author focuses on the impact of having health insurance through one's spouse on the likelihood of self-employment. The best estimates suggest that a guaranteed alternative source of health insurance would increase the probability of self-employment between 2.3 and 4.4 percentage points for husbands and 1.2 and 4.6 percentage points for wives. The author's more conservative estimates suggest that universal coverage could increase the percentage of self-employed in the workforce by 2 to 3.5 percentage points. Copyright 2001 by Oxford University Press.
    • "In this section, we take a step back and re-estimate the same hazard rate model, but exclude the HICD and directly include factors that determine the HICD amount instead. This approach is comparable to the extant literature for the USA, which does not calculate a HICD (Holtz-Eakin et al., 1996; Wellington, 2001; Zissimopoulos and Karoly, 2007; Fairlie et al., 2011).Table 5 shows the probit coefficients for the full sample and separately for men and women; average marginal effects of the most interesting variables appear in the rightmost three columns ofTable In these estimations, poorer health strongly decreases the probability of entry into selfemployment for men. A one point deterioration on the five point scale (std dev.: 0.82) decreases the entry probability by 0.59 percentage points on average (Table A paid employee currently covered under and paying for SHI, i.e., not in marginal employment, is less likely to enter self-employment than somebody who already has PHI. "
    Full-text · Article · Jan 2015 · Journal of Developmental Entrepreneurship
    • "Their results were economically significant, though not statistically significant. Madrian (1998);Wellington (2001); and Fairlie et al. (2011) also studied similar effects utilizing the later SIPP and CPS data sets, and found similar results: individuals with higher demand for health expenditures are more likely to be " locked, " the lack of portability for health insurance coverage does depress business formation, and alternative source of insurance does raise entry into self-employment. Their estimations of these effects are both economically and statistically significant. "
    [Show abstract] [Hide abstract] ABSTRACT: We utilize the NLSY97 data to study the impact of health insurance coverage on the decision to enter self-employment. We find that employer insurance coverage has a strong "pull" effect on the decision, especially among older males. Older females who gain dependent coverage are more likely to start a business, but a causal relationship cannot be established due to endogeneity. Health insurance coverage has little impact on the entry decision of more serious entrepreneurs: those who started a corporation, stared employer businesses and claim to be the manager of their businesses.
    Full-text · Article · Oct 2014 · Journal of Developmental Entrepreneurship
    • "They find that health insurance portability had no systematic effect on this transition. However, again using secondary economic data from the early 1990s, Wellington (2001) estimates the impact of health insurance availability through a spouse on the probability of self-employment. She finds the availability of health insurance could increase self-employment by between 2 and 3.5 percent. "
    [Show abstract] [Hide abstract] ABSTRACT: Unlike prior studies of the impact of health insurance on entrepreneurship, this paper uses primary data from a representative recent survey of entrepreneurs. First, we report the characteristics and socio-economic backgrounds of entrepreneurs. Second, we document that the lack of health insurance has a significant inhibiting impact on entrepreneurs. This paper also documents that the importance of health insurance availability increases for entrepreneurs who are self-funded, married, have children, are from less privileged backgrounds and are in advanced stages of their lives as indicated by having advanced degrees or long work experience when they become entrepreneurs. These results should be of much interest to scholars, managers and policymakers.
    Full-text · Article · Jan 2014
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