1. Does the Marginal Entrepreneur Matter?
- Author
-
Chavda, Ankur, Ecole des Hautes Etudes Commerciales (HEC Paris), and HEC Paris Research Paper Series
- Subjects
Liquidity Constraints ,Firm Entry ,Entrepreneurship ,[SHS.GESTION]Humanities and Social Sciences/Business administration ,Job Lock ,Non-Profit ,health care economics and organizations ,Health Insurance - 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.
- Published
- 2020