Health Insurance Coverage and Entrepreneurship

Alison J. Wellington

College of Wooster - Department of Economics

June 1999

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

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Date posted: August 31, 1999  

Suggested Citation

Wellington, Alison J., Health Insurance Coverage and Entrepreneurship (June 1999). Available at SSRN: https://ssrn.com/abstract=168835

Contact Information

Alison J. Wellington (Contact Author)
College of Wooster - Department of Economics ( email )
Wooster, OH 44691
United States
330-263-2407 (Phone)
330-263-2614 (Fax)
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