Regulation, Entrepreneurship, and Dynamism

Chambers, Dustin; McLaughlin, Patrick A.; Sherouse, Oliver

doi:10.2139/ssrn.3732928

Cited by 2 publications

(6 citation statements)

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“…Using similar measures, Goldschlag and Tabarrok (2018) question the negative association between regulation and dynamism in the USA. Chambers et al. (2020) reconcile these competing results, showing that differences in specification lead to different results.…”

Section: Introductionmentioning

confidence: 87%

“…Using similar measures, Goldschlag and Tabarrok (2018) question the negative association between regulation and dynamism in the USA. Chambers et al (2020) reconcile these competing results, showing that differences in specification lead to different results. Federal regulation is also associated with a smaller share of both output and employment by small firms (Chambers and Guo, 2021).…”

Section: Introductionmentioning

confidence: 87%

“…Bailey and Thomas (2017) measure entrepreneurship as the number of firm births (entry), firm deaths (exit) and new hires, whereas Goldschlag and Tabarrok (2018) use the rate of entry, the rate of exit and the job creation rate. Chambers et al. (2020) discusses, in detail, the relationship between these different approaches.…”

Section: Measuring Barriers To Entry and Inequalitymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

“…These studies use the RegData industry level database of all federal regulation. Industries subject to greater federal regulation tend to have less new firm formation (Bailey and Thomas, 2017;Chambers et al, 2020). Using similar measures, Goldschlag and Tabarrok (2018) question the negative association between regulation and dynamism in the USA.…”

Section: Introductionmentioning

confidence: 99%

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Barriers to entry, entrepreneurship and income inequality within the USA

O’Reilly

2022

JEPP

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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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Section: Introductionmentioning

confidence: 87%