Undergraduate Honors Theses

Thesis Defended

Fall 2017

Document Type

Thesis

Type of Thesis

Departmental Honors

Department

Economics

First Advisor

Terra McKinnish

Abstract

This analysis quantifies the effect of House Bill No. 45, or the Big Government Get Off My Back Act passed in the state of Missouri. This bill was signed into effect in August 2011 and expired in 2014. The bill offers a tax deduction to small business owners who create full-time jobs and offer a competitive wage. A higher tax deduction can be applied if the employer provides an insurance premium to their employees and financially contributes to it. This research aims to measure effects from House Bill No. 45 on unemployment, job-related insurance enrollment, income, employer contribution to health insurance, and full-time employment using the difference-in-differences model. Cross-panel data obtained from the Current Population Survey was used to measure outcome variables in Missouri and selected comparison states before and after House Bill No. 45. The difference-in-differences estimator quantifies these changes for an economic interpretation. Notable results are that House Bill No. 45 is associated with an increase in policyholders of a job-related insurance policy, but did not have any effect on unemployment or full-time employment in Missouri compared to similar states during the same time period.

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