Please use this identifier to cite or link to this item:
Kanniainen, Vesa
Poutvaara, Panu
Year of Publication: 
Series/Report no.: 
IZA Discussion Papers 2859
This paper identifies several distortions which create barriers to entrepreneurship. First, in addition to the innate entry cost, there are entry costs caused by regulation. Second, union wage policies raise the opportunity cost of entrepreneurship. Third, inefficiencies in the transmission of tacit knowledge between generations of entrepreneurs can arise: with access to within-family ownership transfer, the outside market for entrepreneurship operates as a lemon's market. This problem becomes relevant when the economic life of a business idea exceeds the active life of an entrepreneur.
Document Type: 
Working Paper

Files in This Item:
180.91 kB

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.