Abstract
This study investigates the causal effects of social health insurance on business creation. Since 2007, China has launched a health insurance program for urban residents without formal employment, i.e., the Urban Resident Basic Medical Insurance (URBMI). By exploiting the natural experiment, we conduct a staggered difference-in-differences to show that URBMI significantly enhances new firm creation. Results are robust after addressing endogeneity and using alternative dataset. The above effect is particularly pronounced in regions with high level of intellectual property protection, financial development, human capital, and social trust. Finally, risk taking is a plausible mechanism through which health insurance affects entrepreneurship.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
