Entrepreneurship and labor market institutions

The institutions of economic freedom and entrepreneurship: evidence from panel data

“…Van Stel et al (2006) find that both the minimum capital requirements needed to start a business and labour market regulations tend to lower entrepreneurship rates. Kanniainen and Vesala (2005) find that labour market regulations in terms of, for example, unemployment benefits, employee protection and labour union power have negative effects on the self-employment rate in OECD countries. Alfaro and Charlton (2006) find that lower bureaucratic quality tends to decrease entrepreneurship.…”

Economic and political institutions and entry into formal and informal entrepreneurship

“…These include: labor market flexibility (Kanniainen & Vesala, 2005), entry regulations (Djankov, La Porta, Lopez-de-Silanes, & Shleifer 2002), taxation (Gentry & Hubbard, 2000;Johnson, Kaufmann, & Zoido, 1998), property rights regime (Autio & Acs, 2010;Estrin et al, 2012), and bankruptcy law (Lee, Yamakawa, Peng, & Barney, 2011). Studies have also explored the effect of a country's level of corruption and rule of law, which capture the extent to which regulations are actually enforced (Levie & Autio, 2011).…”

Regional opportunities and policy initiatives for new venture creation

“…Similarly, Kanniainen and Vesala (2005) show that the degree of labour market legislation has a negative impact on the rate of new firm formation across countries. According to Feldman (2001) entrepreneurial support lags rather than leads entrepreneurial activity, which would suggest that an increase in entrepreneurial activity awakes policy makers, making them aware of the economic importance of firm entry only ex-post.…”