Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/57522
Authors: 
Prantl, Susanne
Year of Publication: 
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

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