Health insurance and job creation by the self-employed

Health insurance and job creation by the self-employed Health insurance is regulated at the state level by the use of state-mandated health benefits. These are regulations issued by the state that mandate minimum levels of certain benefits as part of policies offered, e.g., drug abuse and alcohol treatment services, treatment for mental illnesses, etc. In this paper, we evaluate the impact of state health insurance mandates on job creation by small firms using data from the Survey of Income and Program Participation (SIPP) dataset for the period 1993–1995. Results from an ordered probit regression indicate that, the larger the number of mandates in a state, the lower the probability that a self-employed person will be a significant employment generator. These results hold when we consider both the sum of mandates as well as a cost-weighted measure of the most expensive mandates. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Small Business Economics Springer Journals

Health insurance and job creation by the self-employed

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Publisher
Springer US
Copyright
Copyright © 2008 by Springer Science+Business Media, LLC.
Subject
Business and Management; Management; Microeconomics; Entrepreneurship; Industrial Organization
ISSN
0921-898X
eISSN
1573-0913
D.O.I.
10.1007/s11187-008-9164-4
Publisher site
See Article on Publisher Site

Abstract

Health insurance is regulated at the state level by the use of state-mandated health benefits. These are regulations issued by the state that mandate minimum levels of certain benefits as part of policies offered, e.g., drug abuse and alcohol treatment services, treatment for mental illnesses, etc. In this paper, we evaluate the impact of state health insurance mandates on job creation by small firms using data from the Survey of Income and Program Participation (SIPP) dataset for the period 1993–1995. Results from an ordered probit regression indicate that, the larger the number of mandates in a state, the lower the probability that a self-employed person will be a significant employment generator. These results hold when we consider both the sum of mandates as well as a cost-weighted measure of the most expensive mandates.

Journal

Small Business EconomicsSpringer Journals

Published: Dec 11, 2008

References

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