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dc.contributor.authorFairlie, Robert W.en_US
dc.contributor.authorKapur, Kanikaen_US
dc.contributor.authorGates, Susanen_US
dc.date.accessioned2011-05-24en_US
dc.date.accessioned2011-06-28T13:56:39Z-
dc.date.available2011-06-28T13:56:39Z-
dc.date.issued2010en_US
dc.identifier.urihttp://hdl.handle.net/10419/46157-
dc.description.abstractThe focus on employer-provided health insurance in the United States may restrict business creation. We address the limited research on the topic of entrepreneurship lock by using recent panel data from matched Current Population Surveys. We use difference-indifference models to estimate the interaction between having a spouse with employer-based health insurance and potential demand for health care. We find evidence of a larger negative effect of health insurance demand on business creation for those without spousal coverage than for those with spousal coverage. We also take a new approach in the literature to examine the question of whether employer-based health insurance discourages business creation by exploiting the discontinuity created at age 65 through the qualification for Medicare. Using a novel procedure of identifying age in months from matched monthly CPS data, we compare the probability of business ownership among male workers in the months just before turning age 65 and in the months just after turning age 65. We find that business ownership rates increase from just under age 65 to just over age 65, whereas we find no change in business ownership rates from just before to just after for other ages 55-75. We also do not find evidence from the previous literature and additional estimates that other confounding factors such as retirement, partial retirement, social security and pension eligibility are responsible for the increase in business ownership in the month individuals turn 65. Our estimates provide some evidence that entrepreneurship lock exists, which raises concerns that the bundling of health insurance and employment may create an inefficient level of business creation.en_US
dc.language.isoengen_US
dc.publisherIZA Bonnen_US
dc.relation.ispartofseriesDiscussion paper series // Forschungsinstitut zur Zukunft der Arbeit 5203en_US
dc.subject.jelL26en_US
dc.subject.jelI1en_US
dc.subject.ddc330en_US
dc.subject.keywordentrepreneurshipen_US
dc.subject.keywordhealth insuranceen_US
dc.subject.keywordmedicareen_US
dc.subject.keywordjob locken_US
dc.subject.stwUnternehmeren_US
dc.subject.stwSelbstständigeen_US
dc.subject.stwUnternehmensgründungen_US
dc.subject.stwBetriebliche Sozialleistungenen_US
dc.subject.stwPrivate Krankenversicherungen_US
dc.subject.stwUSAen_US
dc.titleIs employer-based health insurance a barrier to entrepreneurship?en_US
dc.typeWorking Paperen_US
dc.identifier.ppn659489805en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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