Entry Regulation and Entrepreneurship

Davud Rostam-Afschar

VfS Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century from Verein für Socialpolitik / German Economic Association

Abstract: I exploit the amendment to the German Trade and Crafts Code in 2004 as a natural experiment to asses the causal effects of this reform on the probabilities of being self-employed and of transition into and out of self-employment using repeated cross sections (2002-2006) of German Microcensus data. I apply the Difference-in-Differences technique in logit models for four occupational groups. The results show that easing the educational entry requirement has fostered self-employment significantly for craftsmen after the reform by increasing the entry probability substantially, while exit rates remained unaffected. Similar, but weaker effects are found for the other occupational groups.

JEL-codes: J24 L51 M13 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-ent and nep-reg
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Citations: View citations in EconPapers (14)

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Related works:
Journal Article: Entry regulation and entrepreneurship: a natural experiment in German craftsmanship (2014)
Working Paper: Entry Regulation and Entrepreneurship: Empirical Evidence from a German Natural Experiment (2010)
Working Paper: Entry regulation and entrepreneurship: Empirical evidence from a German natural experiment (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc12:62067

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