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Title:Entry regulation and entrepreneurship: Empirical evidence from a German natural experiment PDF Logo
Authors:Rostam-Afschar, Davud
Issue Date:2010
Series/Report no.:Discussion papers // German Institute for Economic Research 1065
Abstract:The amendment to the German Trade and Crafts Code in 2004 offers a natural experiment to asses the causal effects of this reform on the probabilities of being self-employed and transition into and out of self-employment, using cross-sections (2002-2006) of German microcensus data. This study applies the difference-in-differences technique in logit models for four occupational groups. Easing the educational entry requirement has fostered self-employment significantly for less qualified craftsmen, almost doubling the entry probability, even as exit rates remained unaffected. Weaker effects occur for other occupational groups. These findings have implications for the design of regulations with educational requirements.
Subjects:Regulation
Entrepreneurship
Educational entry requirement
Natural experiment
Craftsmanship
JEL:L51
J24
I28
M13
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des DIW
DIW-Diskussionspapiere

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