Monday, August 10, 2009

US health care costs discourage small business compared to countries with government funded health care?

Center for Economic and Policy Research (via Mark Thoma)

Contrary to popular perceptions, the United States has a much smaller small-business sector (as a share of total employment) than other countries at a comparable level of economic development, according to this new CEPR report. The authors observe that the undersized U.S. small business sector is consistent with the view that high health care costs discourage small business formation, since start-ups in other countries can tap into government-funded health care systems.

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