Health Insurance Coverage and Entrepreneurship
Alison J. Wellington
College of Wooster - Department of Economics
The lack of universal health coverage and the high cost of obtaining private health insurance has been hypothesized to have a dampening effect on entrepreneurship. This paper examines this possibility by estimating the importance of health insurance coverage on the probability of self-employment. In particular, using data from the 1993 CPS, we focus on the impact of having health insurance through one's spouse on the likelihood of self-employment. Our estimates suggest that spousal coverage increases the probability of self-employment for husbands by nearly 14 percentage points and approximately 7 percentage points for wives.
JEL Classification: I1, J2, J3
Date posted: August 31, 1999
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