Where does regulation hurt? Evidence from new businesses across countries
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We use two micro data sets that collect harmonized data across countries to investigate the effects of regulation on new businesses.We are able to distinguish between two types of entrepreneurs: those who start a business to pursue a business opportunity and those who start a business because they could not find better work.Irrespective of the measure of regulation we use, we always find a detrimental effect of regulation on entrepreneurship.While women are overall less likely to start new businesses, in more regulated countries women are pulled into entrepreneurship not to pursue a business opportunity but because they could not find better work.Moreover, regulation dampens the effects of self-assessed business skills and social networks.In more regulated economies, those with better business skills and those who know other entrepreneurs are less likely to become entrepreneurs to pursue a business opportunity.Tighter regulation also exacerbates fear of failure, further discouraging business start-up.All our estimates point to a negative effect of regulation.
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Opportunity and remedial entrepreneurs differ substantially both in personal characteristics and the type of activity they engage in.
“as Ardagna and Lusardi (2009) show, opportunity and remedial entrepreneurs differ substantially both in terms of personal characteristics and the type of activity they engage into.”
From HETEROGENEITY IN THE EFFECT OF REGULATION ON ENTREPRENEURSHIP AND ENTRY SIZE (2010) · cites this paper as Ardagna and Lusardi (2009)
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- Authors
- Ardagna, S., & Lusardi, A.
- Affiliations
- Dartmouth College (US)
- ORCID
- Lusardi, Annamaria
- Venue
- National Bureau of Economic Research
- Publisher
- National Bureau of Economic Research
- Published
- 2009-02
- OpenAlex
- W1575494666
- Cited by
- 41
- References
- 67
- Citations by year
- 2023: 1 · 2021: 3 · 2020: 1 · 2019: 2 · 2018: 1 · 2017: 2 · 2016: 3 · 2015: 2 · 2014: 5 · 2013: 4 · 2012: 6
- Type
- report
- Language
- en
- Open access
- green
- doi.org
- Locations
- National Bureau of Economic Research (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- National Bureau of Economic Research (submittedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Management of Technology and Innovation › Entrepreneurship Studies and Influences
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Firm Innovation and Growth
- Social Sciences › Sociology and Political Science › Migration, Ethnicity, and Economy
- Keywords
- regulation, entrepreneurship, startups, business opportunities, job search, women entrepreneurs, business skills, social networks, fear of failure, cross-national comparison
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