IDEAS home Printed from https://ideas.repec.org/p/zbw/ifhwps/22017.html
   My bibliography  Save this paper

A replication of ‘Entry regulation and entrepreneurship: a natural experiment in German craftsmanship’

Author

Listed:
  • Runst, Petrik
  • Thomä, Jörg
  • Haverkamp, Katarzyna
  • Müller, Klaus

Abstract

Rostam-Afschar (2014) analyzes the impact of the deregulation of the German Trade and Crafts Code of 2004 on entrepreneurial activity, using German microcensus (MC) data. He finds a positive effect on market entry and self-employment and no change in exit probabilities. As these results partially conflict with company registry data, we re-examine the causal effects. Most importantly, we generate a novel classification scheme that aims to achieve an improved identification of crafts trades. Non-craftsmen need to be removed from the analysis as the policy change exclusively pertains to the crafts sector. In contrast to Rostam-Afschar’s findings, the increase in self-employment and entry is more pronounced in the completely deregulated B-trades rather than the partially deregulated A-trades. In addition, exit probabilities do not remain constant but rather increase. Our results are in line with company registry data.

Suggested Citation

  • Runst, Petrik & Thomä, Jörg & Haverkamp, Katarzyna & Müller, Klaus, 2017. "A replication of ‘Entry regulation and entrepreneurship: a natural experiment in German craftsmanship’," ifh Working Papers 2 (2017), Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh), revised 2017.
    • Handle: RePEc:zbw:ifhwps:22017
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/191844/1/ifh-wp-02-2016-update.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Aretz Bodo & Gregory Terry & Arntz Melanie, 2013. "The Minimum Wage Affects Them All: Evidence on Employment Spillovers in the Roofing Sector," German Economic Review, De Gruyter, vol. 14(3), pages 282-315, August.
    2. James J. Heckman & Rodrigo Pinto, 2015. "Econometric Mediation Analyses: Identifying the Sources of Treatment Effects from Experimentally Estimated Production Technologies with Unmeasured and Mismeasured Inputs," Econometric Reviews, Taylor & Francis Journals, vol. 34(1-2), pages 6-31, February.
    3. Davud Rostam-Afschar, 2014. "Entry regulation and entrepreneurship: a natural experiment in German craftsmanship," Empirical Economics, Springer, vol. 47(3), pages 1067-1101, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Katarzyna Haverkamp, 2019. "Das Handwerk - Zur definitorischen und statistischen Abgrenzung eines Querschnittsbereichs," ZfKE – Zeitschrift für KMU und Entrepreneurship, Duncker & Humblot, Berlin, vol. 67(1), pages 67-79.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Petrik Runst & Jörg Thomä & Katarzyna Haverkamp & Klaus Müller, 2019. "A replication of ‘Entry regulation and entrepreneurship: a natural experiment in German craftsmanship’," Empirical Economics, Springer, vol. 56(6), pages 2225-2252, June.
    2. Katarzyna Haverkamp, 2019. "Das Handwerk - Zur definitorischen und statistischen Abgrenzung eines Querschnittsbereichs," ZfKE – Zeitschrift für KMU und Entrepreneurship, Duncker & Humblot, Berlin, vol. 67(1), pages 67-79.
    3. Meghir, Costas & Palme, Mårten & Schnabel, Marieke, 2011. "The Effect of Education Policy on Crime: An Intergenerational Perspective," Research Papers in Economics 2011:23, Stockholm University, Department of Economics.
    4. Adam M. Lavecchia & Philip Oreopoulos & Robert S. Brown, 2020. "Long-Run Effects from Comprehensive Student Support: Evidence from Pathways to Education," American Economic Review: Insights, American Economic Association, vol. 2(2), pages 209-224, June.
    5. Lindsey Macmillan & Emma Tominey, 2023. "Parental inputs and socio-economic gaps in early child development," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(3), pages 1513-1543, July.
    6. Jacob M. Meyer, 2020. "Checks and Imbalances: Exploring the Links between Political Constraints and Banking Crises using Econometric Mediation," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 63(1), pages 71-96.
    7. Guo, Xu & Li, Runze & Liu, Jingyuan & Zeng, Mudong, 2023. "Statistical inference for linear mediation models with high-dimensional mediators and application to studying stock reaction to COVID-19 pandemic," Journal of Econometrics, Elsevier, vol. 235(1), pages 166-179.
    8. Henning Hermes & Philipp Lergetporer & Frauke Peter & Simon Wiederhold, 2021. "Application Barriers and the Socioeconomic Gap in Child Care Enrollment," CESifo Working Paper Series 9282, CESifo.
    9. Mendolia, Silvia & Siminski, Peter, 2017. "Is education the mechanism through which family background affects economic outcomes? A generalised approach to mediation analysis," Economics of Education Review, Elsevier, vol. 59(C), pages 1-12.
    10. Börschlein, Erik-Benjamin & Bossler, Mario, 2019. "Eine Bilanz nach fünf Jahren gesetzlicher Mindestlohn: Positive Lohneffekte, kaum Beschäftigungseffekte (Five Years of statutory minimum wage in Germany: Significant wage effects, barely any employmen," IAB-Kurzbericht 201924, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    11. repec:hal:cdiwps:halshs-02532955 is not listed on IDEAS
    12. Hille, Adrian & Schupp, Jürgen, 2015. "How Learning a Musical Instrument Affects the Development of Skills," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 44, pages 56-82.
    13. Maria Koumenta & Mario Pagliero, 2019. "Occupational Regulation in the European Union: Coverage and Wage Effects," British Journal of Industrial Relations, London School of Economics, vol. 57(4), pages 818-849, December.
    14. Koumenta, Maria & Pagliero, Mario & Rostam-Afschar, Davud, 2020. "Occupational licensing and the gender wage gap," Hohenheim Discussion Papers in Business, Economics and Social Sciences 13-2020, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    15. Sven Resnjanskij & Jens Ruhose & Simon Wiederhold & Ludger Woessmann & Katharina Wedel, 2024. "Can Mentoring Alleviate Family Disadvantage in Adolescence? A Field Experiment to Improve Labor Market Prospects," Journal of Political Economy, University of Chicago Press, vol. 132(3), pages 1013-1062.
    16. Kilburn, Kelly & Handa, Sudhanshu & Angeles, Gustavo & Mvula, Peter & Tsoka, Maxton, 2017. "Short-term impacts of an unconditional cash transfer program on child schooling: Experimental evidence from Malawi," Economics of Education Review, Elsevier, vol. 59(C), pages 63-80.
    17. Petrik Runst & Michael Wyrwich, 2023. "Poor soil as a fertile breeding ground: the role of historical agricultural specialization for the persistence of regional differences in crafts," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 71(3), pages 575-600, December.
    18. Heckman, James J. & Humphries, John Eric & Veramendi, Gregory & Urzua, Sergio, 2014. "Education, Health and Wages," IZA Discussion Papers 8027, Institute of Labor Economics (IZA).
    19. Gregory, Terry & Zierahn, Ulrich, 2022. "When the minimum wage really bites hard: The negative spillover effect on high-skilled workers," Journal of Public Economics, Elsevier, vol. 206(C).
    20. Alexia Delfino & Miguel Espinosa, 2025. "Value Dissonance at Work," CESifo Working Paper Series 11690, CESifo.
    21. Hermes, Henning & Krauß, Marina & Lergetporer, Philipp & Peter, Frauke & Wiederhold, Simon, 2022. "Early Child Care and Labor Supply of Lower-SES Mothers: A Randomized Controlled Trial," IZA Discussion Papers 15814, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:ifhwps:22017. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/ifgoede.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.