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DID REFORM OF THE NON-GROUP HEALTH INSURANCE MARKET AFFECT THE DECISION TO BE SELF-EMPLOYED? EVIDENCE FROM STATE REFORMS IN THE 1990s

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SUMMARY

This paper estimates whether state-level implementation of community rating and guaranteed issue regulations in the non-group health insurance market during the 1990s affected the decision of taxpayers to be self-employed. Using a panel of tax returns that span 1987–2000, we find no statistically significant effect of the reforms on the propensity to be self-employed overall, although we find evidence of an increase in self-employment among older taxpayers and weaker evidence of decreases among younger cohorts. Copyright © 2013 John Wiley & Sons, Ltd.

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