Abstract
We utilize the NLSY97 data to study the impact of health insurance coverage on the decision to enter self-employment. We find that employer insurance coverage has a strong pull effect on the decision, especially among older males. Older females who gain dependent coverage are more likely to start a business, but a causal relationship cannot be established due to endogeneity. Health insurance coverage has little impact on the entry decision of more serious entrepreneurs: those who started a corporation, stared employer businesses and claim to be the manager of their businesses.
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