Full Citation

Title: Health Insurance and the Supply of Entrepreneurs: Evidence from the ACA Medicaid Expansion

Citation Type: Journal Article

Publication Year: 2019

ISBN:

ISSN: 1556-5068

DOI: 10.2139/ssrn.3462896

NSFID:

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Abstract: I examine whether the expansion of Medicaid eligibility under the Affordable Care Act increases the supply of entrepreneurs as measured by self-employment. Using the 2003–2017 Current Population Survey and focusing on childless adults in low-income households, I apply difference-in-differences, propensity score weighting, and instrumental variable (IV) methods. I find that expanding Medicaid eligibility raises the self-employment rate by 0.8 to 1.6 percentage points, without increasing self-employment exit. IV estimates imply that covered individuals have 8 to 11 percentage points higher probability to become self-employed. In the analysis of policy heterogeneity, I find evidence that the underlying mechanism of the effect was through the reduction of entrepreneurship lock. The results suggest that limited access to health insurance may be a barrier to entrepreneurship.

Url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3462896

Url: https://www.ssrn.com/abstract=3462896

User Submitted?: No

Authors: Lee, Kyung Min

Periodical (Full): SSRN Electronic Journal

Issue:

Volume:

Pages:

Data Collections: IPUMS CPS

Topics: Health, Population Health and Health Systems

Countries: United States