Barriers to entry, entrepreneurship and income inequality within the USA

Colin O’Reilly
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引用次数: 1

Abstract

PurposeCross-country studies have shown that higher costs to starting a business tend to reduce entrepreneurship (Chambers and Munemo, 2019) and that an unfavorable environment for business can increase poverty and income inequality (Chambers et al., 2019a; Djankov et al., 2018). Building on the current literature, the authors test whether barriers to starting a business at the state and city level in the USA are associated with changes in entrepreneurship and income inequality.Design/methodology/approachMeasures of entrepreneurship (establishment entry rate and exit rate) are regressed on measures of barriers to entry in a cross-section of 50 states as well as a cross-section of 73 cities in the USA. Further, the authors regress measures of income inequality on measures of barriers to entry using the same two cross-sections. State level data on barriers to entry are from Teague (2016), published in the Journal of Entrepreneurship and Public Policy. City level data on barriers to starting a business are from the Doing Business in North America (DBNA) dataset.FindingsResults show that there is a negative and significant association between barriers to starting a business and the rate of firm exit. A standard deviation increase in barriers to entry is associated with a five percent decrease in the firm exit rate at the state level. The authors find only limited evidence that barriers to entry are associated with income inequality.Originality/valueDespite a large volume of scholarship on how regulation and barriers to entry influence entrepreneurship, no study (to the authors’ knowledge) has investigated how general entry regulation affects the entry or exit rate of establishments at the state or municipal level in the USA.
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美国的进入壁垒、创业和收入不平等
目的跨国研究表明,创业成本越高往往会减少创业精神(Chambers和Munemo,2019),不利的创业环境会加剧贫困和收入不平等(Chamberes等人,2019a;Djankov等人,2018)。在现有文献的基础上,作者测试了在美国州和城市层面创业的障碍是否与创业和收入不平等的变化有关。设计/方法/方法创业指标(企业进入率和退出率)在美国50个州和73个城市的进入壁垒指标上进行了回归。此外,作者使用相同的两个横截面将收入不平等指标回归到进入壁垒指标。关于进入壁垒的州一级数据来自Teague(2016),发表在《创业与公共政策杂志》上。关于创业障碍的城市级数据来自《北美营商环境》(DBNA)数据集。研究结果表明,创业障碍与企业退出率之间存在显著的负相关关系。进入壁垒的标准差增加与州一级企业退出率下降5%有关。作者发现,只有有限的证据表明进入壁垒与收入不平等有关。原创性/价值尽管有大量关于监管和进入壁垒如何影响创业的学术研究,但(据作者所知)没有任何研究调查一般进入监管如何影响美国州或市一级企业的进入或退出率。
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来源期刊
CiteScore
3.70
自引率
15.80%
发文量
22
期刊介绍: Institutions – especially public policies – are a significant determinant of economic outcomes; entrepreneurship and enterprise development are often the channel by which public policies affect economic outcomes, and by which outcomes feed back to the policy process. The Journal of Entrepreneurship & Public Policy (JEPP) was created to encourage and disseminate quality research about these vital relationships. The ultimate aim is to improve the quality of the political discourse about entrepreneurship and development policies. JEPP publishes two issues per year and welcomes: Empirically oriented academic papers and accepts a wide variety of empirical evidence. Generally, the journal considers any analysis based on real-world circumstances and conditions that can change behaviour, legislation, or outcomes, Conceptual or theoretical papers that indicate a direction for future research, or otherwise advance the field of study, A limited number of carefully and accurately executed replication studies, Book reviews. In general, JEPP seeks high-quality articles that say something interesting about the relationships among public policy and entrepreneurship, entrepreneurship and economic development, or all three areas. Scope/Coverage: Entrepreneurship, Public policy, Public policies and behaviour of economic agents, Interjurisdictional differentials and their effects, Law and entrepreneurship, New firms; startups, Microeconomic analyses of economic development, Development planning and policy, Innovation and invention: processes and incentives, Regional economic activity: growth, development, and changes, Regional development policy.
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