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| Title: | | The impact of firm entry regulation on long-living entrants  |
| Authors: | | Prantl, Susanne |
| Issue Date: | | 2010 |
| Series/Report no.: | | Preprints of the Max Planck Institute for Research on Collective Goods 2010,30 |
| Abstract: | | What is the impact of firm entry regulation on sustained entry into self-employment? How does firm entry regulation influence the performance of long-living entrants? In this paper, I address these questions by exploiting a natural experiment in firm entry regulation. After German reunification, East and West Germany faced different economic conditions, but fell under the same law that imposes a substantial mandatory standard on entrepreneurs who want to start a legally independent firm in one of the regulated occupations. The empirical results suggest that the entry regulation suppresses long-living entrants, not only entrants in general or transient, short-lived entrants. This effect on the number of long-living entrants is not accompanied by a counteracting effect on the performance of long-living entrants, as measured by firm size several years after entry. |
| Subjects: | | firm entry regulation sustained entry self-employment firm size |
| JEL: | | K20 L25 L26 L50 M13 P52 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Preprints of the Max Planck Institute for Research on Collective Goods
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