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

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Author Info
Prantl, Susanne () (WZB - Social Science Research Center Berlin)
Spitz-Oener, Alexandra () (Humboldt University, Berlin)

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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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Publisher 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: 2009 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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Related research
Keywords: self-employment; occupational mobility; entry regulation;

Other versions of this item:

Find related papers by JEL classification:
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
J62 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Job, Occupational and Intergenerational Mobility; Promotion
K20 - Law and Economics - - Regulation and Business Law - - - General
L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups

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