Abstract

http://ssrn.com/abstract=1645211
 


 



The Impact of Firm Entry Regulation on Long-Living Entrants


Susanne Prantl


Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Research on Collective Goods

July 2010

MPI Collective Goods Preprint, No. 2010/30

Abstract:     
What is the impact of firm entry regulation on sustained entry into self-employment? How does firm entry regulation influence the performance of long-living entrants? In this paper, I address these questions by exploiting a natural experiment in firm entry regulation. After German reunification, East and West Germany faced different economic conditions, but fell under the same law that imposes a substantial mandatory standard on entrepreneurs who want to start a legally independent firm in one of the regulated occupations. The empirical results suggest that the entry regulation suppresses long-living entrants, not only entrants in general or transient, short-lived entrants. This effect on the number of long-living entrants is not accompanied by a counteracting effect on the performance of long-living entrants, as measured by firm size several years after entry.

Number of Pages in PDF File: 31

Keywords: Firm entry regulation, sustained entry, self-employment, firm size

JEL Classification: L50, K20, L25, L26, M13, P52

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Date posted: July 21, 2010  

Suggested Citation

Prantl, Susanne, The Impact of Firm Entry Regulation on Long-Living Entrants (July 2010). MPI Collective Goods Preprint, No. 2010/30. Available at SSRN: http://ssrn.com/abstract=1645211 or http://dx.doi.org/10.2139/ssrn.1645211

Contact Information

Susanne Prantl (Contact Author)
Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Research on Collective Goods ( email )
Kurt-Schumacher-Str. 10
D-53113 Bonn, 53113
Germany
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