Small Business Economics

, Volume 43, Issue 4, pp 917–930 | Cite as

Does health reform affect self-employment? Evidence from Massachusetts

  • Bradley T. HeimEmail author
  • Ithai Z. Lurie


This paper evaluates whether the implementation of the 2006 Massachusetts health reform law affected the decision of taxpayers to be self-employed, using both difference-in-differences and synthetic control methods on a panel of tax returns that spans 1999–2010. Though tenuous, our results suggest that the reform led to a decline in the rate of taxpayers earning a majority of income from self-employment. In addition, it appears to have had a positive impact on earning some self-employment income among joint filers and earning the majority of income from self-employment among older taxpayers, but these were offset by negative impacts on single filers and taxpayers age 35–49.


Self-employment Health reform Health insurance 

JEL Classifications

L26 I18 I13 


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Copyright information

© Springer Science+Business Media New York (outside the USA) 2014

Authors and Affiliations

  1. 1.School of Public and Environmental AffairsIndiana UniversityBloomingtonUSA
  2. 2.Office of Tax AnalysisU.S. Department of TreasuryWashingtonUSA

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