License to Sell : The Effect of Business Registration Reform on Entrepreneurial Activity in Mexico
This paper studies the effect of business registration regulation on economic activity using micro-level data. The identification strategy exploits the fact that a recent business registration reform in Mexico was introduced in different municipali...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2008/02/9043810/license-sell-effect-business-registration-reform-entrepreneurial-activity-mexico http://hdl.handle.net/10986/6596 |
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okr-10986-65962021-04-23T14:02:31Z License to Sell : The Effect of Business Registration Reform on Entrepreneurial Activity in Mexico Bruhn, Miriam ACCOUNT ADMINISTRATIVE DATA BARRIERS TO ENTRY BEST PRACTICES BUSINESS ENTRY BUSINESS REGISTRATION BUSINESS REGULATION BUSINESS SECTOR BUSINESSES CALCULATION CHECKS COMMERCE CONSUMER CONSUMERS CUSTOMER BASE ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMICS EMPLOYMENT GROWTH EMPLOYMENT OPPORTUNITIES GLOBAL ECONOMY ICT INCOME INCOME INCREASES INCOMES INCREASE IN INCOME INTERNATIONAL COMPARISON JOB CREATION LABOR DEMAND LABOR FORCE LABOR FORCE PARTICIPATION LABOR MARKET LABOR MARKETS LABOR REGULATIONS LABOR SUPPLY LICENSE LICENSES LOCAL BUSINESS MEDICAL INSURANCE MISSING DATA MONTHLY INCOME MOTIVATION NEW ENTREPRENEURS NEW JOBS OCCUPATIONS PRICE INDEX PRIMARY EDUCATION PRIVATE SECTOR PRODUCTIVITY REAL INCOME RECORD KEEPING REGISTRIES REGISTRY RESULT RESULTS RETAIL STORES RETAIL TRADE SECONDARY EDUCATION SELF-EMPLOYMENT SOCIAL SECURITY SUPPORT PROGRAMS TIME PERIOD TIME PERIODS UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT RATE UNEMPLOYMENT STATISTICS UNPAID WORKERS USES VALUABLE VIDEO VIDEO GAME WAGE WEB WORKING AGE This paper studies the effect of business registration regulation on economic activity using micro-level data. The identification strategy exploits the fact that a recent business registration reform in Mexico was introduced in different municipalities at different points in time. Using panel data from the Mexican employment survey, I find that the reform increased the number of registered businesses by 5 percent in eligible industries. 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. Moreover, employment in eligible industries went up by 2.8 percent, and people who were previously unemployed or out of the labor force were more likely to work as wage earners after the reform. Finally, the results imply that the competition from new entrants lowered prices by 0.6 percent and decreased the income of incumbent businesses by 3.2 percent. 2012-05-29T19:19:08Z 2012-05-29T19:19:08Z 2008-02 http://documents.worldbank.org/curated/en/2008/02/9043810/license-sell-effect-business-registration-reform-entrepreneurial-activity-mexico http://hdl.handle.net/10986/6596 English Policy Research Working Paper; No. 4538 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean Mexico |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCOUNT ADMINISTRATIVE DATA BARRIERS TO ENTRY BEST PRACTICES BUSINESS ENTRY BUSINESS REGISTRATION BUSINESS REGULATION BUSINESS SECTOR BUSINESSES CALCULATION CHECKS COMMERCE CONSUMER CONSUMERS CUSTOMER BASE ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMICS EMPLOYMENT GROWTH EMPLOYMENT OPPORTUNITIES GLOBAL ECONOMY ICT INCOME INCOME INCREASES INCOMES INCREASE IN INCOME INTERNATIONAL COMPARISON JOB CREATION LABOR DEMAND LABOR FORCE LABOR FORCE PARTICIPATION LABOR MARKET LABOR MARKETS LABOR REGULATIONS LABOR SUPPLY LICENSE LICENSES LOCAL BUSINESS MEDICAL INSURANCE MISSING DATA MONTHLY INCOME MOTIVATION NEW ENTREPRENEURS NEW JOBS OCCUPATIONS PRICE INDEX PRIMARY EDUCATION PRIVATE SECTOR PRODUCTIVITY REAL INCOME RECORD KEEPING REGISTRIES REGISTRY RESULT RESULTS RETAIL STORES RETAIL TRADE SECONDARY EDUCATION SELF-EMPLOYMENT SOCIAL SECURITY SUPPORT PROGRAMS TIME PERIOD TIME PERIODS UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT RATE UNEMPLOYMENT STATISTICS UNPAID WORKERS USES VALUABLE VIDEO VIDEO GAME WAGE WEB WORKING AGE |
| spellingShingle |
ACCOUNT ADMINISTRATIVE DATA BARRIERS TO ENTRY BEST PRACTICES BUSINESS ENTRY BUSINESS REGISTRATION BUSINESS REGULATION BUSINESS SECTOR BUSINESSES CALCULATION CHECKS COMMERCE CONSUMER CONSUMERS CUSTOMER BASE ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMICS EMPLOYMENT GROWTH EMPLOYMENT OPPORTUNITIES GLOBAL ECONOMY ICT INCOME INCOME INCREASES INCOMES INCREASE IN INCOME INTERNATIONAL COMPARISON JOB CREATION LABOR DEMAND LABOR FORCE LABOR FORCE PARTICIPATION LABOR MARKET LABOR MARKETS LABOR REGULATIONS LABOR SUPPLY LICENSE LICENSES LOCAL BUSINESS MEDICAL INSURANCE MISSING DATA MONTHLY INCOME MOTIVATION NEW ENTREPRENEURS NEW JOBS OCCUPATIONS PRICE INDEX PRIMARY EDUCATION PRIVATE SECTOR PRODUCTIVITY REAL INCOME RECORD KEEPING REGISTRIES REGISTRY RESULT RESULTS RETAIL STORES RETAIL TRADE SECONDARY EDUCATION SELF-EMPLOYMENT SOCIAL SECURITY SUPPORT PROGRAMS TIME PERIOD TIME PERIODS UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT RATE UNEMPLOYMENT STATISTICS UNPAID WORKERS USES VALUABLE VIDEO VIDEO GAME WAGE WEB WORKING AGE Bruhn, Miriam License to Sell : The Effect of Business Registration Reform on Entrepreneurial Activity in Mexico |
| geographic_facet |
Latin America & Caribbean Mexico |
| relation |
Policy Research Working Paper; No. 4538 |
| description |
This paper studies the effect of
business registration regulation on economic activity using
micro-level data. The identification strategy exploits the
fact that a recent business registration reform in Mexico
was introduced in different municipalities at different
points in time. Using panel data from the Mexican employment
survey, I find that the reform increased the number of
registered businesses by 5 percent in eligible industries.
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.
Moreover, employment in eligible industries went up by 2.8
percent, and people who were previously unemployed or out of
the labor force were more likely to work as wage earners
after the reform. Finally, the results imply that the
competition from new entrants lowered prices by 0.6 percent
and decreased the income of incumbent businesses by 3.2 percent. |
| format |
Publications & Research :: Policy Research Working Paper |
| 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 |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2008/02/9043810/license-sell-effect-business-registration-reform-entrepreneurial-activity-mexico http://hdl.handle.net/10986/6596 |
| _version_ |
1764400602277740544 |