Health Insurance and the Supply of Entrepreneurs

52 Pages Posted: 4 May 2011 Last revised: 3 May 2021

See all articles by Doug Holtz-Eakin

Doug Holtz-Eakin

American Action Forum

Douglas Holtz-Eakin

Syracuse University; National Bureau of Economic Research (NBER)

John R. Penrod

McGill University - Montreal General Hospital

Harvey S. Rosen

Princeton University - Department of Economics; National Bureau of Economic Research (NBER); CESifo (Center for Economic Studies and Ifo Institute)

Date Written: October 1994

Abstract

Some commentators have suggested that the absence of portable health insurance impedes people from leaving their jobs to start new firms. We investigate this belief by comparing wage-earners who become self-employed during a given period of time with their counterparts who do not. By examining the impact of variables relating to the health insurance and health status of these workers and their families, we can infer whether the lack of health insurance portability affects the probability that they become self-employed. The evidence does not support the conjecture that the current health insurance system affects the propensity to become self-employed. Hence, whatever its other merits, there is no reason to believe that the introduction of universal health insurance would significantly enhance entrepreneurial activity.

Suggested Citation

Holtz-Eakin, Doug and Holtz-Eakin, Douglas and Penrod, John R. and Rosen, Harvey S., Health Insurance and the Supply of Entrepreneurs (October 1994). NBER Working Paper No. w4880, Available at SSRN: https://ssrn.com/abstract=1830992

Doug Holtz-Eakin (Contact Author)

American Action Forum ( email )

United States

Douglas Holtz-Eakin

Syracuse University ( email )

900 S. Crouse Avenue
Syracuse, NY 13244-2130
United States
315-443-3612 (Phone)
315-443-3717 (Fax)

National Bureau of Economic Research (NBER)

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John R. Penrod

McGill University - Montreal General Hospital ( email )

Research Institute
Montreal, Quebec

Harvey S. Rosen

Princeton University - Department of Economics ( email )

001 Fisher Hall
Princeton, NJ 08544
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

CESifo (Center for Economic Studies and Ifo Institute)

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Munich, DE-81679
Germany

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