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

Susanne Prantl () and Alexandra Spitz-Oener
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Susanne Prantl: University of Cologne

No 4221, IZA Discussion Papers from Institute of Labor Economics (IZA)

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.

Keywords: self-employment; occupational mobility; entry regulation (search for similar items in EconPapers)
JEL-codes: J24 J62 K20 L11 L51 M13 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2009-06
New Economics Papers: this item is included in nep-ent, nep-lab and nep-reg
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Citations: View citations in EconPapers (30)

Published - published in: Economics of Transition, 2009, 17 (4), 769-802

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Related works:
Journal Article: How does entry regulation influence entry into self‐employment and occupational mobility?1 (2009)
Working Paper: How does entry regulation influence entry into self-employment and occupational mobility? (2009)
Working Paper: How does entry regulation influence entry into selfemployment and occupational mobility? (2009)
Working Paper: How does entry regulation influence entry into self-employment and occupational mobility? (2009)
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