Self-Employment and the Role of Health Insurance

33 Pages Posted: 25 Jan 2009

See all articles by Gulcin Gumus

Gulcin Gumus

Florida International University (FIU); IZA Institute of Labor Economics

Tracy Regan

University of Miami - School of Business Administration - Department of Economics

Abstract

We investigate the effect of health insurance on labor market transitions in and out of self-employment as well as on the likelihood of being self-employed. We consider the role of individual health insurance coverage along with that from a spouse. Next, we examine a series of tax deductions granted to the self-employed through amendments made to the 1986 Tax Reform Act. Using data from the Current Population Survey for 1996-2007, we find significant but small effects of the after-tax health insurance premium on the entry rate, with no effect on exits from self-employment or the likelihood of being self-employed.

Keywords: health insurance, self-employment, CPS, ORG

JEL Classification: J32, J48, I11

Suggested Citation

Gumus, Gulcin and Regan, Tracy, Self-Employment and the Role of Health Insurance. IZA Discussion Paper No. 3952. Available at SSRN: https://ssrn.com/abstract=1332593

Gulcin Gumus (Contact Author)

Florida International University (FIU) ( email )

University Park
11200 SW 8th Street
Miami, FL 33199
United States

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Tracy Regan

University of Miami - School of Business Administration - Department of Economics ( email )

P.O. Box 248126
Coral Gables, FL 33124-6550
United States

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