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How does entry regulation influence entry into selfemployment and occupational mobility?

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  • Prantl, Susanne
  • Spitz-Oener, Alexandra

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 with the corresponding differences in West Germany after reunification. Consistent with our expectations, we find that entry regulation reduces entry into selfemployment 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 Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich in its series Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems with number 267.

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Date of creation: Jul 2009
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Handle: RePEc:trf:wpaper:267

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Keywords: Entry Regulation; Self-Employment; Occupational Mobility;

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Citations

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Cited by:
  1. Michał Grajek & Lars-Hendrik Röller, 2009. "Regulation and Investment in Network Industries: Evidence from European Telecoms," SFB 649 Discussion Papers SFB649DP2009-039, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
  2. Prantl, Susanne & Spitz-Oener, Alexandra, 2014. "Interacting Product and Labor Market Regulation and the Impact of Immigration on Native Wages," IZA Discussion Papers 7882, Institute for the Study of Labor (IZA).
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. Susanne Prantl & Alexandra Spitz-Oener, 2014. "Interacting Product and Labor Market Regulation and the Impact of Immigration on Native Wages," SFB 649 Discussion Papers SFB649DP2014-018, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
  8. Barbara Choroś & Wolfgang Härdle & Ostap Okhrin, 2009. "CDO and HAC," SFB 649 Discussion Papers SFB649DP2009-038, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
  9. Roland Strausz, 2009. "The Political Economy of Regulatory Risk," SFB 649 Discussion Papers SFB649DP2009-040, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
  10. Prantl, Susanne & Spitz-Oener, Alexandra, 2014. "Interacting product and labor market regulation and the impact of immigration on native wages," IAB Discussion Paper 201404, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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