Self-employment and the role of health insurance in the U.S.

Gümüş, Gülçin; Regan, Tracy L.

doi:10.1016/j.jbusvent.2014.01.001

Cited by 38 publications

(41 citation statements)

References 53 publications

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“…None of the interaction terms have a statistically significant coefficient estimate, lending support to the parallel trend assumption. 20 See also Wellington (2001) and Gumus and Regan (2015). 21 Throughout, we match observations across waves based on household identifiers and personal line numbers.…”

Section: By-esi Analysismentioning

confidence: 99%

The impact of the Affordable Care Act on self‐employment

Heim

Yang

2017

Health Economics

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This paper estimates the impact of the implementation of the Affordable Care Act (ACA) in 2014 on the decision to be self-employed. Using data from the Current Population Survey, we employ two identification strategies. Utilizing prereform variation in state nongroup health insurance market regulations, we find that the ACA did not increase self-employment overall in states that lacked similar provisions in their nongroup markets prior to 2014. In specifications that utilize variation across individuals in characteristics that could make it harder for them to purchase insurance if they left their current employer, we also do not find that the ACA differentially increased self-employment. However, in states that lacked the ACA nongroup market provisions, we do find a statistically significant increase in the second year of implementation (when individuals had more time to adjust behavior and the exchanges functioned properly) among individuals eligible for insurance subsidies, suggesting that a combination of time to adjust, low uncertainty and low insurance costs may be necessary for nongroup health insurance reforms to impact self-employment.

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Section: By-esi Analysismentioning

confidence: 99%

The impact of the Affordable Care Act on self‐employment

Heim

Yang

2017

Health Economics

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“… See Heim and Lurie (2010, 2013) on the impact of the deductibility of self-employed health insurance, andHoltz- Eakin et al (1996),Madrian and Lefgren (1998),Wellington (2001),Gumus andRegan (2009), andFairlie et al (2011) on the impact of the availability of employer-sponsored health insurance on self-employment.…”

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confidence: 99%

Does health reform affect self-employment? Evidence from Massachusetts

Heim

Lurie

2014

Small Bus Econ

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This paper evaluates whether the implementation of the 2006 Massachusetts health reform law affected the decision of taxpayers to be selfemployed, using both difference-in-differences and synthetic control methods on a panel of tax returns that spans 1999-2010. Though tenuous, our results suggest that the reform led to a decline in the rate of taxpayers earning a majority of income from self-employment. In addition, it appears to have had a positive impact on earning some self-employment income among joint filers and earning the majority of income from selfemployment among older taxpayers, but these were offset by negative impacts on single filers and taxpayers age 35-49.

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“…This policy reform allowed entrepreneurs to deduct increasing portions of their health insurance premiums from their taxable income. Heim and Lurie (2010) and Gurley-Calvez (2011) use a panel of tax return data, whereas Velamuri (2012) and Gumus and Regan (2014) employ CPS data. The results from the four articles suggest that a lower after-tax price of health insurance in self-employment increases the self-employment and entry rates and decreases the exit rate, although Gumus and Regan (2014) do not find a significant effect on the entry probability.…”

Section: Extant Literature and Our Contributionsmentioning

confidence: 99%

Public Health Insurance and Entry into Self-Employment

Fossen

König

2015

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. We estimate the impact of a differential treatment of paid employees versus self-employed workers in a public health insurance system on the entry rate into entrepreneurship. In Germany, the public health insurance system is mandatory for most paid employees, but not for the selfemployed, who usually buy private health insurance. Private health insurance contributions are relatively low for the young and healthy, and until 2013 also for males, but less attractive at the other ends of these dimensions and if membership in the public health insurance allows other family members to be covered by contribution-free family insurance. Therefore, the health insurance system can create incentives or disincentives to starting up a business depending on the family's situation and health. We estimate a discrete time hazard rate model of entrepreneurial entry based on representative household panel data for Germany, which include personal health information, and we account for non-random sample selection. We estimate that an increase in the health insurance cost differential between self-employed workers and paid employees by 100 euro per month decreases the annual probability of entry into selfemployment by 0.38 percentage points, i.e. about a third of the average annual entry rate. The results show that the phenomenon of entrepreneurship lock, which an emerging literature describes for the system of employer provided health insurance in the USA, can also occur in a public health insurance system. Therefore, entrepreneurial activity should be taken into account when discussing potential health care reforms, not only in the USA and in Germany. Terms of use: Documents inJEL classification: L26, I13, J2.

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Self-employment and the role of health insurance in the U.S.

Cited by 38 publications

References 53 publications

The impact of the Affordable Care Act on self‐employment

The impact of the Affordable Care Act on self‐employment

Does health reform affect self-employment? Evidence from Massachusetts

Public Health Insurance and Entry into Self-Employment

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