Health Insurance and the Supply of Entrepreneurs

Abstract

Some commentators have suggested that the absence of portable health insurance impedes people from leaving their jobs to start new finns.We investigate this belief by comparing wageearners 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 theft 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 selfemployed.Hence, whatever its other merits, there is no reason to believe that the introduction of universal health insurance would significantly enhance entrepreneurial activity.

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