Barriers to prosperity: the harmful impact of entry regulations on income inequality
Abstract Entry regulations, including fees, permits and licenses, can make it prohibitively difficult for low-income individuals to establish footholds in many industries, even at the entry-level. As such, these regulations increase income inequality by either preventing access to higher paying prof...
Ausführliche Beschreibung
Autor*in: |
Chambers, Dustin [verfasserIn] |
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Sprache: |
Englisch |
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2018 |
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Anmerkung: |
© Springer Science+Business Media, LLC, part of Springer Nature 2018 |
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Übergeordnetes Werk: |
Enthalten in: Public choice - Springer US, 1968, 180(2018), 1-2 vom: 13. Jan., Seite 165-190 |
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Übergeordnetes Werk: |
volume:180 ; year:2018 ; number:1-2 ; day:13 ; month:01 ; pages:165-190 |
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DOI / URN: |
10.1007/s11127-018-0498-4 |
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OLC2061973698 |
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10.1007/s11127-018-0498-4 doi (DE-627)OLC2061973698 (DE-He213)s11127-018-0498-4-p DE-627 ger DE-627 rakwb eng 330 VZ Chambers, Dustin verfasserin (orcid)0000-0001-7722-2240 aut Barriers to prosperity: the harmful impact of entry regulations on income inequality 2018 Text txt rdacontent ohne Hilfsmittel zu benutzen n rdamedia Band nc rdacarrier © Springer Science+Business Media, LLC, part of Springer Nature 2018 Abstract Entry regulations, including fees, permits and licenses, can make it prohibitively difficult for low-income individuals to establish footholds in many industries, even at the entry-level. As such, these regulations increase income inequality by either preventing access to higher paying professions or imposing costs on individuals choosing to enter illegally and provide unlicensed services. To estimate this relationship empirically, we combine entry regulations data from the World Bank’s Doing Business Index with various measures of income inequality, including Gini coefficients and income shares to form a panel of 115 countries. We find that countries with more stringent entry regulations tend to experience more income inequality. In countries with average inequality, increasing the number of procedures required to start a new business by one standard deviation is associated with a 7.2% increase in the share of income accruing to the top decile of earners, and a 12.9% increase in the overall Gini coefficient. This result is robust to the measure of inequality, startup regulations, and potential endogeneity. We conclude by offering several policy recommendations designed to minimize the adverse effects of entry regulations. Income inequality Regulation Entry regulations Doing business Gini coefficient McLaughlin, Patrick A. aut Stanley, Laura aut Enthalten in Public choice Springer US, 1968 180(2018), 1-2 vom: 13. Jan., Seite 165-190 (DE-627)129497630 (DE-600)207597-0 (DE-576)014896680 0048-5829 nnns volume:180 year:2018 number:1-2 day:13 month:01 pages:165-190 https://doi.org/10.1007/s11127-018-0498-4 lizenzpflichtig Volltext GBV_USEFLAG_A SYSFLAG_A GBV_OLC SSG-OLC-POL SSG-OLC-WIW GBV_ILN_26 GBV_ILN_4012 GBV_ILN_4028 GBV_ILN_4323 AR 180 2018 1-2 13 01 165-190 |
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10.1007/s11127-018-0498-4 doi (DE-627)OLC2061973698 (DE-He213)s11127-018-0498-4-p DE-627 ger DE-627 rakwb eng 330 VZ Chambers, Dustin verfasserin (orcid)0000-0001-7722-2240 aut Barriers to prosperity: the harmful impact of entry regulations on income inequality 2018 Text txt rdacontent ohne Hilfsmittel zu benutzen n rdamedia Band nc rdacarrier © Springer Science+Business Media, LLC, part of Springer Nature 2018 Abstract Entry regulations, including fees, permits and licenses, can make it prohibitively difficult for low-income individuals to establish footholds in many industries, even at the entry-level. As such, these regulations increase income inequality by either preventing access to higher paying professions or imposing costs on individuals choosing to enter illegally and provide unlicensed services. To estimate this relationship empirically, we combine entry regulations data from the World Bank’s Doing Business Index with various measures of income inequality, including Gini coefficients and income shares to form a panel of 115 countries. We find that countries with more stringent entry regulations tend to experience more income inequality. In countries with average inequality, increasing the number of procedures required to start a new business by one standard deviation is associated with a 7.2% increase in the share of income accruing to the top decile of earners, and a 12.9% increase in the overall Gini coefficient. This result is robust to the measure of inequality, startup regulations, and potential endogeneity. We conclude by offering several policy recommendations designed to minimize the adverse effects of entry regulations. Income inequality Regulation Entry regulations Doing business Gini coefficient McLaughlin, Patrick A. aut Stanley, Laura aut Enthalten in Public choice Springer US, 1968 180(2018), 1-2 vom: 13. Jan., Seite 165-190 (DE-627)129497630 (DE-600)207597-0 (DE-576)014896680 0048-5829 nnns volume:180 year:2018 number:1-2 day:13 month:01 pages:165-190 https://doi.org/10.1007/s11127-018-0498-4 lizenzpflichtig Volltext GBV_USEFLAG_A SYSFLAG_A GBV_OLC SSG-OLC-POL SSG-OLC-WIW GBV_ILN_26 GBV_ILN_4012 GBV_ILN_4028 GBV_ILN_4323 AR 180 2018 1-2 13 01 165-190 |
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10.1007/s11127-018-0498-4 doi (DE-627)OLC2061973698 (DE-He213)s11127-018-0498-4-p DE-627 ger DE-627 rakwb eng 330 VZ Chambers, Dustin verfasserin (orcid)0000-0001-7722-2240 aut Barriers to prosperity: the harmful impact of entry regulations on income inequality 2018 Text txt rdacontent ohne Hilfsmittel zu benutzen n rdamedia Band nc rdacarrier © Springer Science+Business Media, LLC, part of Springer Nature 2018 Abstract Entry regulations, including fees, permits and licenses, can make it prohibitively difficult for low-income individuals to establish footholds in many industries, even at the entry-level. As such, these regulations increase income inequality by either preventing access to higher paying professions or imposing costs on individuals choosing to enter illegally and provide unlicensed services. To estimate this relationship empirically, we combine entry regulations data from the World Bank’s Doing Business Index with various measures of income inequality, including Gini coefficients and income shares to form a panel of 115 countries. We find that countries with more stringent entry regulations tend to experience more income inequality. In countries with average inequality, increasing the number of procedures required to start a new business by one standard deviation is associated with a 7.2% increase in the share of income accruing to the top decile of earners, and a 12.9% increase in the overall Gini coefficient. This result is robust to the measure of inequality, startup regulations, and potential endogeneity. We conclude by offering several policy recommendations designed to minimize the adverse effects of entry regulations. Income inequality Regulation Entry regulations Doing business Gini coefficient McLaughlin, Patrick A. aut Stanley, Laura aut Enthalten in Public choice Springer US, 1968 180(2018), 1-2 vom: 13. Jan., Seite 165-190 (DE-627)129497630 (DE-600)207597-0 (DE-576)014896680 0048-5829 nnns volume:180 year:2018 number:1-2 day:13 month:01 pages:165-190 https://doi.org/10.1007/s11127-018-0498-4 lizenzpflichtig Volltext GBV_USEFLAG_A SYSFLAG_A GBV_OLC SSG-OLC-POL SSG-OLC-WIW GBV_ILN_26 GBV_ILN_4012 GBV_ILN_4028 GBV_ILN_4323 AR 180 2018 1-2 13 01 165-190 |
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10.1007/s11127-018-0498-4 doi (DE-627)OLC2061973698 (DE-He213)s11127-018-0498-4-p DE-627 ger DE-627 rakwb eng 330 VZ Chambers, Dustin verfasserin (orcid)0000-0001-7722-2240 aut Barriers to prosperity: the harmful impact of entry regulations on income inequality 2018 Text txt rdacontent ohne Hilfsmittel zu benutzen n rdamedia Band nc rdacarrier © Springer Science+Business Media, LLC, part of Springer Nature 2018 Abstract Entry regulations, including fees, permits and licenses, can make it prohibitively difficult for low-income individuals to establish footholds in many industries, even at the entry-level. As such, these regulations increase income inequality by either preventing access to higher paying professions or imposing costs on individuals choosing to enter illegally and provide unlicensed services. To estimate this relationship empirically, we combine entry regulations data from the World Bank’s Doing Business Index with various measures of income inequality, including Gini coefficients and income shares to form a panel of 115 countries. We find that countries with more stringent entry regulations tend to experience more income inequality. In countries with average inequality, increasing the number of procedures required to start a new business by one standard deviation is associated with a 7.2% increase in the share of income accruing to the top decile of earners, and a 12.9% increase in the overall Gini coefficient. This result is robust to the measure of inequality, startup regulations, and potential endogeneity. We conclude by offering several policy recommendations designed to minimize the adverse effects of entry regulations. Income inequality Regulation Entry regulations Doing business Gini coefficient McLaughlin, Patrick A. aut Stanley, Laura aut Enthalten in Public choice Springer US, 1968 180(2018), 1-2 vom: 13. Jan., Seite 165-190 (DE-627)129497630 (DE-600)207597-0 (DE-576)014896680 0048-5829 nnns volume:180 year:2018 number:1-2 day:13 month:01 pages:165-190 https://doi.org/10.1007/s11127-018-0498-4 lizenzpflichtig Volltext GBV_USEFLAG_A SYSFLAG_A GBV_OLC SSG-OLC-POL SSG-OLC-WIW GBV_ILN_26 GBV_ILN_4012 GBV_ILN_4028 GBV_ILN_4323 AR 180 2018 1-2 13 01 165-190 |
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10.1007/s11127-018-0498-4 doi (DE-627)OLC2061973698 (DE-He213)s11127-018-0498-4-p DE-627 ger DE-627 rakwb eng 330 VZ Chambers, Dustin verfasserin (orcid)0000-0001-7722-2240 aut Barriers to prosperity: the harmful impact of entry regulations on income inequality 2018 Text txt rdacontent ohne Hilfsmittel zu benutzen n rdamedia Band nc rdacarrier © Springer Science+Business Media, LLC, part of Springer Nature 2018 Abstract Entry regulations, including fees, permits and licenses, can make it prohibitively difficult for low-income individuals to establish footholds in many industries, even at the entry-level. As such, these regulations increase income inequality by either preventing access to higher paying professions or imposing costs on individuals choosing to enter illegally and provide unlicensed services. To estimate this relationship empirically, we combine entry regulations data from the World Bank’s Doing Business Index with various measures of income inequality, including Gini coefficients and income shares to form a panel of 115 countries. We find that countries with more stringent entry regulations tend to experience more income inequality. In countries with average inequality, increasing the number of procedures required to start a new business by one standard deviation is associated with a 7.2% increase in the share of income accruing to the top decile of earners, and a 12.9% increase in the overall Gini coefficient. This result is robust to the measure of inequality, startup regulations, and potential endogeneity. We conclude by offering several policy recommendations designed to minimize the adverse effects of entry regulations. Income inequality Regulation Entry regulations Doing business Gini coefficient McLaughlin, Patrick A. aut Stanley, Laura aut Enthalten in Public choice Springer US, 1968 180(2018), 1-2 vom: 13. Jan., Seite 165-190 (DE-627)129497630 (DE-600)207597-0 (DE-576)014896680 0048-5829 nnns volume:180 year:2018 number:1-2 day:13 month:01 pages:165-190 https://doi.org/10.1007/s11127-018-0498-4 lizenzpflichtig Volltext GBV_USEFLAG_A SYSFLAG_A GBV_OLC SSG-OLC-POL SSG-OLC-WIW GBV_ILN_26 GBV_ILN_4012 GBV_ILN_4028 GBV_ILN_4323 AR 180 2018 1-2 13 01 165-190 |
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Abstract Entry regulations, including fees, permits and licenses, can make it prohibitively difficult for low-income individuals to establish footholds in many industries, even at the entry-level. As such, these regulations increase income inequality by either preventing access to higher paying professions or imposing costs on individuals choosing to enter illegally and provide unlicensed services. To estimate this relationship empirically, we combine entry regulations data from the World Bank’s Doing Business Index with various measures of income inequality, including Gini coefficients and income shares to form a panel of 115 countries. We find that countries with more stringent entry regulations tend to experience more income inequality. In countries with average inequality, increasing the number of procedures required to start a new business by one standard deviation is associated with a 7.2% increase in the share of income accruing to the top decile of earners, and a 12.9% increase in the overall Gini coefficient. This result is robust to the measure of inequality, startup regulations, and potential endogeneity. We conclude by offering several policy recommendations designed to minimize the adverse effects of entry regulations. © Springer Science+Business Media, LLC, part of Springer Nature 2018 |
abstractGer |
Abstract Entry regulations, including fees, permits and licenses, can make it prohibitively difficult for low-income individuals to establish footholds in many industries, even at the entry-level. As such, these regulations increase income inequality by either preventing access to higher paying professions or imposing costs on individuals choosing to enter illegally and provide unlicensed services. To estimate this relationship empirically, we combine entry regulations data from the World Bank’s Doing Business Index with various measures of income inequality, including Gini coefficients and income shares to form a panel of 115 countries. We find that countries with more stringent entry regulations tend to experience more income inequality. In countries with average inequality, increasing the number of procedures required to start a new business by one standard deviation is associated with a 7.2% increase in the share of income accruing to the top decile of earners, and a 12.9% increase in the overall Gini coefficient. This result is robust to the measure of inequality, startup regulations, and potential endogeneity. We conclude by offering several policy recommendations designed to minimize the adverse effects of entry regulations. © Springer Science+Business Media, LLC, part of Springer Nature 2018 |
abstract_unstemmed |
Abstract Entry regulations, including fees, permits and licenses, can make it prohibitively difficult for low-income individuals to establish footholds in many industries, even at the entry-level. As such, these regulations increase income inequality by either preventing access to higher paying professions or imposing costs on individuals choosing to enter illegally and provide unlicensed services. To estimate this relationship empirically, we combine entry regulations data from the World Bank’s Doing Business Index with various measures of income inequality, including Gini coefficients and income shares to form a panel of 115 countries. We find that countries with more stringent entry regulations tend to experience more income inequality. In countries with average inequality, increasing the number of procedures required to start a new business by one standard deviation is associated with a 7.2% increase in the share of income accruing to the top decile of earners, and a 12.9% increase in the overall Gini coefficient. This result is robust to the measure of inequality, startup regulations, and potential endogeneity. We conclude by offering several policy recommendations designed to minimize the adverse effects of entry regulations. © Springer Science+Business Media, LLC, part of Springer Nature 2018 |
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Barriers to prosperity: the harmful impact of entry regulations on income inequality |
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McLaughlin, Patrick A. Stanley, Laura |
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