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Does the Marginal Entrepreneur Matter?

Abstract : I study the effect of improved access to health insurance on the rate new business formation and the quality of those newly created businesses. I develop theoretical models which provide predictions on how improved access to health insurance would heterogeneously affect firms by non-profit status and capital requirements. Using the 2006 reform of the Massachusetts health insurance market, I test those predications and find non-profit entrepreneurship was significantly affected although overall entrepreneurship seems constrained by factors other than access to health care such as access to capital. I also provide evidence that the quality of non-profits created by the shock where poor. These results suggest that even when policy changes are able to induce more entrepreneurship, the marginal quality of those entrepreneurs may be poor.
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https://hal-hec.archives-ouvertes.fr/hal-02896655
Contributor : Antoine Haldemann <>
Submitted on : Friday, July 10, 2020 - 4:40:05 PM
Last modification on : Saturday, July 11, 2020 - 3:51:06 AM

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Ankur Chavda. Does the Marginal Entrepreneur Matter?. 2020. ⟨hal-02896655⟩

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