To Your Health: Health Insurance, Self-Employment Exit, and Older Entrepreneurs

Drawing on a sample of 5,238 individuals in the Health and Retirement Study, we examined the relationship between having one's own health insurance and exit from self-employment to employment. Our results indicate that individuals who have health insurance are less likely to exit self-employment. When self-employed individuals have their own health insurance, males, relative to females, are more likely to exit self-employment. Additionally, when self-employed individuals have their own health insurance, those who do not have health problems that limit work are more likely to exit. We discuss the implications that these findings have on the literature and policymakers.