Posted: 31 Aug 1999
Date Written: 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
Suggested Citation: Suggested Citation
Wellington, Alison J., Health Insurance Coverage and Entrepreneurship (June 1999). Available at SSRN: https://ssrn.com/abstract=168835