[ABSTRAK
Menurut teori mikroekonomi, risk aversion dapat menghalangi seseorangmembuat keputusan yang optimal dalam situasi yang beresiko. Jika seseorang percayabahwa menjadi wira usaha memiliki resiko lebih tinggi daripada menjadi karyawan, makadalam derajat risk aversion tertentu, orang tersebut tidak akan menjadi wira usaha,meskipun memiliki potensi yang cukup. Dalam situasi seperti ini, asuransi dapatmembantu meningkatkan jumlah wira usaha baru. Penelitian ini menggunakan datatingkat keluarga dari Panel Study of Income Dynamics, dan sebagai institusi asuransi,digunakan kode kepailitan (Bankruptcy Code) Amerika Serikat, spesifiknya,pengecualian aset rumah (Homestead Exemption). Hasilnya adalah, peningkatanpengecualian aset rumah sebesar sepuluh poin persentase meningkatkan kemungkinankepemilikan bisnis sebesar 1.5 poin persentase, setelah tahun 2005. Penelitian ini jugamenemukan bahwa efek tersebut hanya terjadi pada bisnis berbadan hukum korporasi(Incorporated Business).

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ABSTRACT
Microeconomic theory suggests that risk aversion may result in people to takeless optimal decision in a situation associated with risk. If people believe that being selfemployedis riskier than being wage-employed, then at some point, risk averse wageemployedwon?t become self-employed even if it is optimal to do so. In this case,introducing some sort of insurance scheme may increase people?s participation in selfemploymentactivity. I use the family level data from Panel Study of Income Dynamics,and I exploit provisions in the United States? bankruptcy code, specifically the homesteadexemption level, as the insurance institution. I find that the increase of exemption level byten percentage point increases the probability of owning a business by 1.5 percentagepoints, after the year 2005. I also find that the effect is explained by the incorporatedbusiness., Microeconomic theory suggests that risk aversion may result in people to takeless optimal decision in a situation associated with risk. If people believe that being selfemployedis riskier than being wage-employed, then at some point, risk averse wageemployedwon’t become self-employed even if it is optimal to do so. In this case,introducing some sort of insurance scheme may increase people’s participation in selfemploymentactivity. I use the family level data from Panel Study of Income Dynamics,and I exploit provisions in the United States’ bankruptcy code, specifically the homesteadexemption level, as the insurance institution. I find that the increase of exemption level byten percentage point increases the probability of owning a business by 1.5 percentagepoints, after the year 2005. I also find that the effect is explained by the incorporatedbusiness.]