Investigators at University of Nevada Detail Findings in Insurance (The Cost of Health Insurance and Entry Into Entrepreneurship).

A recent study conducted by researchers at the University of Nevada explores the relationship between health insurance costs and entrepreneurship. The study suggests that high health insurance premiums can act as a barrier to individuals transitioning from paid employment to entrepreneurship, a phenomenon known as entrepreneurship lock. The researchers used data from the Current Population Survey and county-level panel data on health insurance costs to estimate the effects of health insurance premiums on the entry rate into self-employment. The results indicate that a 1% increase in the premium of the benchmark health insurance plan decreases the entry rate into self-employment by 0.76%. The study concludes that reducing health insurance premiums could increase the annual entry rate into self-employment by about 9%. [Extracted from the article]