Faculty & Research
Publications
Publications

Entrepreneurship and Public Health Insurance

By: Gareth Olds
  • Format:Print
  • | Language:English
  • | Pages:52
ShareBar

Abstract

I examine the relationship between public health insurance and firm formation. Developing a variant of regression discontinuity, I find the Child Health Insurance Program lowered the child uninsured rate by 40% and increased self-employment by 15%. Monte Carlo evidence suggests the technique significantly reduces bias and Type-1 Error. SCHIP increased incorporated ownership by 36% and business share of household income by 12%, implying higher-quality ventures. The mechanism is a reduction in risk rather than credit constraints, and I find no imbalance in observable characteristics between treatment and control groups. These findings strongly suggest social safety nets have spillover benefits on the supply of firms.

Keywords

Insurance; Entrepreneurship

Citation

Olds, Gareth. "Entrepreneurship and Public Health Insurance." Harvard Business School Working Paper, No. 16-144, June 2016.

More from the Author