Effect of Health Care Costs on the Growth and Survival of Small Business

Publication Date


Grant Type

Research grant


While many studies have documented the low rate of health insurance offers among small firms and examined the potential factors determining this low rate, no studies have longitudinally examined the relationship between the growth and survival of small business and health care costs. This study conducts a longitudinal analysis of how health insurance offerings (HIO) affect the expansion and survival of small businesses. After controlling for business characteristics and relevant state level variables, it examines how HIO affects worker turnover, employment, wage or revenue growth.