State Medicaid Expansion and the Self-Employed

Jun Yeong Lee () and John Winters
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Jun Yeong Lee: Iowa State University

Small Business Economics, 2022, vol. 59, issue 3, No 8, 925-954

Abstract: Abstract This paper examines effects of state Medicaid Expansion via the Affordable Care Act on the self-employed. We first examine impacts on the probability of self-employment and find small and not significant estimated effects of Medicaid expansion on the likelihood of being self-employed. We then examine effects of Medicaid expansion on the probability of having health insurance for persons who are self-employed. State Medicaid expansion increased overall health insurance coverage rates, with especially large impacts for the unincorporated self-employed. Impacts on health insurance rates of the self-employed also strengthened over time. The results indicate that Medicaid expansion does not affect entry into self-employment but it does provide significant health insurance benefits for many small business owners with low incomes who otherwise would face considerable difficulty obtaining health insurance.

Keywords: Self-employed; Entrepreneurship; Health insurance; Affordable Care Act; State Medicaid expansion (search for similar items in EconPapers)
JEL-codes: H51 I13 L26 (search for similar items in EconPapers)
Date: 2022
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Working Paper: State Medicaid Expansion and the Self-Employed (2020)
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DOI: 10.1007/s11187-021-00559-5

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