License to Sell : The Effect of Business Registration Reform on Entrepreneurial Activity in Mexico
This paper estimates the economic effects of a recent reform that simplified business entry regulation in Mexico. The reform was introduced in different municipalities at different points in time. Using microlevel data, I find that the reform increased the number of registered businesses by 5%. This...
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| Format: | Journal Article |
| Language: | EN |
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MIT Press
2012
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| Online Access: | http://hdl.handle.net/10986/5465 |
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okr-10986-54652021-04-23T14:02:22Z License to Sell : The Effect of Business Registration Reform on Entrepreneurial Activity in Mexico Bruhn, Miriam Economics of Regulation L510 New Firms Startups M130 Microeconomic Analyses of Economic Development O120 This paper estimates the economic effects of a recent reform that simplified business entry regulation in Mexico. The reform was introduced in different municipalities at different points in time. Using microlevel data, I find that the reform increased the number of registered businesses by 5%. This increase was due to former wage earners' opening businesses. Former unregistered business owners were not more likely to register their business after the reform. The reform also increased wage employment by 2.2%. Finally, the results imply that the competition from new entrants decreased the income of incumbent businesses by 3%. 2012-03-30T07:32:58Z 2012-03-30T07:32:58Z 2011-02 Journal Article Review of Economics and Statistics 00346535 http://hdl.handle.net/10986/5465 EN CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank MIT Press Publications & Research :: Journal Article Publications & Research Mexico |
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Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
EN |
| topic |
Economics of Regulation L510 New Firms Startups M130 Microeconomic Analyses of Economic Development O120 |
| spellingShingle |
Economics of Regulation L510 New Firms Startups M130 Microeconomic Analyses of Economic Development O120 Bruhn, Miriam License to Sell : The Effect of Business Registration Reform on Entrepreneurial Activity in Mexico |
| geographic_facet |
Mexico |
| description |
This paper estimates the economic effects of a recent reform that simplified business entry regulation in Mexico. The reform was introduced in different municipalities at different points in time. Using microlevel data, I find that the reform increased the number of registered businesses by 5%. This increase was due to former wage earners' opening businesses. Former unregistered business owners were not more likely to register their business after the reform. The reform also increased wage employment by 2.2%. Finally, the results imply that the competition from new entrants decreased the income of incumbent businesses by 3%. |
| format |
Journal Article |
| author |
Bruhn, Miriam |
| author_facet |
Bruhn, Miriam |
| author_sort |
Bruhn, Miriam |
| title |
License to Sell : The Effect of Business Registration Reform on Entrepreneurial Activity in Mexico |
| title_short |
License to Sell : The Effect of Business Registration Reform on Entrepreneurial Activity in Mexico |
| title_full |
License to Sell : The Effect of Business Registration Reform on Entrepreneurial Activity in Mexico |
| title_fullStr |
License to Sell : The Effect of Business Registration Reform on Entrepreneurial Activity in Mexico |
| title_full_unstemmed |
License to Sell : The Effect of Business Registration Reform on Entrepreneurial Activity in Mexico |
| title_sort |
license to sell : the effect of business registration reform on entrepreneurial activity in mexico |
| publisher |
MIT Press |
| publishDate |
2012 |
| url |
http://hdl.handle.net/10986/5465 |
| _version_ |
1764395144977580032 |