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 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%.
View list of all: Journal Articles
Go to Publication(this link opens in new window)