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Occupational Licensing restrictions and early-stage entrepreneurship: a US state-level analysis

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  • John A. Dove
  • Noah J. Trudeau

Abstract

Various literatures have evaluated the economic consequences associated with both entrepreneurship and occupational licencing. However, there has been a relative lack of research that attempts to tie the two together. This study empirically investigates if and how occupational licencing restrictions impact early-stage entrepreneurship across US states. By utilizing a new index of state licensure restrictiveness, various measures from the Kauffman Index of Entrepreneurial Activity, along with establishment birth and death rates, our study finds that early-stage entrepreneurship and establishment deaths are negatively and significantly associated with more restrictive occupational licencing, though the channels are nuanced. Implications are discussed.

Suggested Citation

  • John A. Dove & Noah J. Trudeau, 2026. "Occupational Licensing restrictions and early-stage entrepreneurship: a US state-level analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 33(6), pages 801-805, March.
    • Handle: RePEc:taf:apeclt:v:33:y:2026:i:6:p:801-805
    DOI: 10.1080/13504851.2024.2395464
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