Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/183113
Authors: 
Rostam-Afschar, Davud
Strohmaier, Kristina
Year of Publication: 
2018
Series/Report no.: 
Hohenheim Discussion Papers in Business, Economics and Social Sciences No. 23-2018
Publisher: 
Universität Hohenheim, Fakultät Wirtschafts- und Sozialwissenschaften, Stuttgart
Abstract: 
We exploit an exogenous price increase by about 10% for architectural services to answer the question how price regulation affects income inequality and service quality. Using individual-level data from the German microcensus for the years 2006 to 2012, we find a significant reform effect of 8% on personal net income for self-employed architects and construction engineers. This group moved from the second lowest to the highest quintile of the net income distribution. This increase in inequality is associated with a deterioration of service quality. The reform reduced average scores of a peer ranking for architects by 18%.
Subjects: 
Regulation
Inequality
Wages
Service Quality
Entrepreneurship
Natural Experiment
JEL: 
L5
L11
L74
J44
L26
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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