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How Does Entry Regulation Influence Entry into Self-Employment and Occupational Mobility?

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  • Prantl, Susanne

    ()
    (University of Cologne)

  • Spitz-Oener, Alexandra

    ()
    (Humboldt University Berlin)

Abstract

We analyze how an entry regulation that imposes a mandatory educational standard affects entry into self-employment and occupational mobility. We exploit the German reunification as a natural experiment and identify regulatory effects by comparing differences between regulated occupations and unregulated occupations in East Germany to the corresponding differences in West Germany after reunification. Consistent with our expectations, we find that entry regulation reduces entry into self-employment and occupational mobility after reunification more in regulated occupations in East Germany than in West Germany. Our findings are relevant for transition or emerging economies as well as for mature market economies requiring large structural changes after unforeseen economic shocks.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4221.

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Length: 38 pages
Date of creation: Jun 2009
Date of revision:
Publication status: published in: Economics of Transition, 2009, 17 (4), 769-802
Handle: RePEc:iza:izadps:dp4221

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Keywords: self-employment; occupational mobility; entry regulation;

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Cited by:
  1. Skriabikova, Olga & Dohmen, Thomas & Kriechel, Ben, 2014. "New Evidence on the Relationship between Risk Attitudes and Self-Employment," IZA Discussion Papers 8354, Institute for the Study of Labor (IZA).
  2. Roland Strausz, 2010. "The Political Economy of Regulatory Risk," CESifo Working Paper Series 2953, CESifo Group Munich.
  3. Maria Grith & Wolfgang Härdle & Juhyun Park, 2009. "Shape invariant modelling pricing kernels and risk aversion," SFB 649 Discussion Papers SFB649DP2009-041, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
  4. Lee G. Branstetter & Francisco Lima & Lowell J. Taylor & Ana Venâncio, 2010. "Do Entry Regulations Deter Entrepreneurship and Job Creation? Evidence from Recent Reforms in Portugal," NBER Working Papers 16473, National Bureau of Economic Research, Inc.
  5. Michał Grajek & Lars-Hendrik R�ller, 2012. "Regulation and Investment in Network Industries: Evidence from European Telecoms," Journal of Law and Economics, University of Chicago Press, University of Chicago Press, vol. 55(1), pages 189 - 216.
  6. Rostam-Afschar, Davud, 2012. "Entry Regulation and Entrepreneurship," Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62067, Verein für Socialpolitik / German Economic Association.
  7. Susanne Prantl & Alexandra Spitz-Oener, 2013. "Interacting Product and Labor Market Regulation and the Impact of Immigration on Native Wages," Working Paper Series of the Max Planck Institute for Research on Collective Goods, Max Planck Institute for Research on Collective Goods 2013_22, Max Planck Institute for Research on Collective Goods.
  8. Barbara Choroś & Wolfgang Härdle & Ostap Okhrin, 2009. "CDO and HAC," SFB 649 Discussion Papers SFB649DP2009-038, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
  9. Susanne Prantl, 2012. "The impact of firm entry regulation on long-living entrants," Small Business Economics, Springer, Springer, vol. 39(1), pages 61-76, July.
  10. Juliane Scheffel, 2011. "Identifying the Effect of Temporal Work Flexibility on Parental Time with Children," SFB 649 Discussion Papers SFB649DP2011-024, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.

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