Variation In Entry Research Articles

Introducing a new state-level occupational licensing requirement database

PurposeThis paper aims to discuss a new source of data detailing state level occupational licensing requirements for 50 professions.Design/methodology/approachThis study's research team gathered state level licensing requirements for 50 profession in all 50 states and DC from 2022 to 2023. The authors include the type of regulation, entry requirements like fees, education, training, good moral character provisions and renewal requirements. The authors include Standard Occupational Classification industry codes to allow researchers to merge it with other publicly available data sources. Finally, the authors present descriptive statistics and provide a comparison of licensing requirements for audiologists, an occupation with variation in entry requirements.FindingsThe mean number of the 50 professions licensed in states is 36. On average, these professions require a bachelor's degree, $271 in licensing fees and 26 h of continuing education to renew. For the audiologist profession, there is considerable variation between states in entry requirements like fees and education.Originality/valueDespite a large body of work on occupational licensing, data limitations still exist. Most analysis focuses on whether a profession is licensed or not. However, there is considerable variation between states for the same profession, providing an avenue for work estimating the effects of specific licensing requirements. A new source of data is introduced and discussed for researchers to use in future analyses of occupational licensing.

Toward a theory of entry in moral markets: The role of social movements and organizational identity

A growing body of research on moral markets—sectors whose raison d’être is to create social value by offering market solutions to social and environmental issues—has offered critical insights into the emergence and growth of these sectors. Less is known, however, about why some firms enter moral markets while others do not. Drawing from research on market entry, organizational identity, and social movements, we develop a theory that highlights the potential of organizational identity to explain variation in entry into moral markets. We then expand our framework by theorizing about contingencies that alter the shape of the relationship between organizational identity and market entry: the flexibility of the organizations’ identity, the type, and orientation of the social movement supporting the moral market, and the mode of market entry (de novo vs de alio). Finally, we discuss the contributions of our framework and opportunities for its extension.

Toward a Theory of Entry in Moral Markets: The Role of Social Movements and Organizational Identity

A growing body of research on moral markets — sectors whose raison d’etre is to offer market solutions to social and environmental issues — has offered critical insights into the emergence and growth of these sectors. Less is known, however, about why some firms enter moral markets while others do not. Drawing from research on market entry, organizational identity, and social movements, we develop a theory that highlights the potential of organizational identity to explain variation in entry into moral markets. We then expand our framework by theorizing about contingencies that alter the shape of the relationship between organizational identity and market entry: the type and orientation of the social movement supporting the moral market, the flexibility of organizational identity, and the mode of market entry (de novo vs. de alio). Finally, we discuss the contributions of our framework and opportunities for extension.

Taxes, corruption, and entry

Tax policies and corruption are important institutional considerations which can shape entrepreneurship. We investigate how tax rates, and the interaction between corruption and tax rates, influence variations in entry across a panel of 72 countries in the period 2005–2011. We use a series of panel estimations as well as several robustness checks to test these effects, using relevant controls for economic development, the size of the state, and other regulatory and tax policy measures. We find that higher tax rates consistently discourage entry. Further, we find that although the direct influence of corruption on entry is also consistently negative, the interaction influence of corruption and tax rate is positive. This indicates that corruption can offset the negative influence of high taxes on entry. We discuss the implications of our findings for policymakers and future research.

Sex and Drugs (But Not Rock and Roll): The Variation in HIV-Related Restrictions on the Entry, Stay, and Residence of Seropositive Foreigners in the Middle East and North Africa

This paper considers the variation in entry, stay, and residence travel restrictions for people living with HIV/AIDS in the World Health Organization's Eastern Mediterranean region and the wider Muslim world. If these travel restrictions are associated with human rights violations, why do some countries maintain restrictions while others repeal them? In particular, why do countries with a secular governmental regime like Egypt maintain restrictions, while non-secular countries like Iran do not? We argue that in the Eastern Mediterranean region this variation is explained not by the characteristics of a country's particular form of Islam, its level of development, or its adherence to human rights norms, but by the characteristics of the epidemic in a given country. Countries in which the main mode of transmission is sex maintain restrictions because of stigma associated with sex outside marriage in Islam. Countries in which the main mode of transmission is injecting drug use are less likely to maintain restrictions because of Islam's more lenient approach towards drugs. Using firth logistic regression, we show that this holds for countries in the Eastern Mediterranean, but not for Muslim countries globally. We discuss possible reasons for this and the implications for future research.

Identification in Auctions with Selective Entry

This paper considers nonparametric identification of a two-stage entry and bidding model for auctions which we call the Affiliated-Signal (AS) model. This model assumes that potential bidders have private values, observe imperfect signals of their true values prior to entry, and choose whether to undertake a costly entry process. The AS model is a theoretically appealing candidate for the structural analysis of auctions with entry: it accommodates a wide range of entry processes, in particular nesting the Levin and Smith (1994) and Samuelson (1985) models as special cases. To date, however, the model's identification properties have not been well understood. We establish identification results for the general AS model, using variation in factors affecting entry behavior (such as potential competition or entry costs) to construct identified bounds on model fundamentals. If available entry variation is continuous, the AS model may be point identified; otherwise, it will be partially identified. We derive constructive identification results in both cases, which can readily be refined to produce the sharp identified set. We also consider policy analysis in environments where only partial identification is possible, and derive identified bounds on expected seller revenue corresponding to a wide range of counterfactual policies while accounting for endogenous and arbitrarily selective entry. Finally, we establish that our core results extend to environments with asymmetric bidders and nonseperable auction-level unobserved heterogeneity.

Identification in Auctions With Selective Entry

This paper considers nonparametric identification of a two-stage entry and bidding game we call the Affiliated-Signal (AS) model. This model assumes that potential bidders have private values, observe signals of their values prior to entry, and then choose whether to undertake a costly entry process, but imposes only minimal structure on the relationship between signals and values. It thereby nests a wide range of entry processes, including in particular the Samuelson (1985) and Levin and Smith (1994) models as special cases. Working within the AS model, we map variation in factors affecting entry behavior (potential competition or entry costs) into identified bounds on model fundamentals. These bounds are constructive, collapse to point identification when available entry variation is continuous, and can readily be refined to produce the pointwise sharp identified set. We then extend our core results to accommodate nonseparable unobserved auction-level heterogeneity and potential endogeneity of entry shifters, thereby establishing a formal identification framework for structural analysis of auctions with selective entry.

Group Threat and Ethnic Variation in Party Membership Attainment in China

Many scholars have examined how human capital, geography, etc. have shaped patterns of ethnic inequality in China. This paper studies the role the state plays in producing inter-group disparities in China. It discusses the link between the state and minority threat and explains how the linkage produces ethnic variation in entry into the Chinese Communist Party. Data are drawn from two surveys (N = 3,619) on Han Chinese, Hui, and Uyghurs conducted in two Chinese cities in 2001. Controlling for background characteristics removes the Han–Uyghur difference in CCP membership attainment. In contrast, no similar patterns are found when Han Chinese are compared with Hui. This contrast is explained with reference to state reaction to ethnic variation in perceived group threat.

On the Real Effects of Private Equity Investment: Evidence from New Business Creation

Using a comprehensive database of European firms, we study how private equity affects the rate of firm entry. We find that private equity investment benefits new business incorporation, especially in industries with naturally higher entry rates and R&D intensity. A two standard deviation increase in private equity investment explains as much as 5.5% of the variation in entry between high-entry and low-entry industries. We address endogeneity by exploiting data on laws that regulate private equity investments by pension funds. Our results hold when we correct for barriers to entry, general access to credit, protection of intellectual property, and labour regulations. JEL Classification: G24, L26, M13

On the Real Effects of Private Equity Investment: Evidence from New Business Creation

Using a comprehensive database of European firms, we study how the volume of private equity investment affects the rate of creation of new firms. Applying cross-country cross-industry analysis, we find that private equity investment in general benefits new business incorporation, especially in industries with naturally higher entry rates and R&D intensity. A two standard deviation increase in private equity explains as much as 5.5% of the variation in entry between high-entry and low-entry industries. We also find that the stage distribution of private equity investment and the type of private equity investor matter: there is significantly higher entry in countries where more investment is allocated to early stage financing, and where a higher share of the investment comes from independent private equity investors. We address endogeneity by employing data on laws that regulate the private equity investments of insurance companies and pension funds as instruments. Our results are robust to endogeneity problems and private equity remains an important determinant of new business entry after controlling for the effects of the regulatory and business environment, such as the requirements that must be met to start a limited liability company, intellectual property protection, and labor regulations.

Accounting for Net Entry into Greek Manufacturing by Establishments of Varying Size

Adopting the view that size matters in understanding entry (exit) patterns, this research explores the nature and causes of net entry patterns of various size-defined groups of establishments in the case of a less industrialised country – Greece. The hypothesis to be tested is that the determinants of entry are not independent of firm size. Throughout this paper the analysis has had to confront difficulties arising from the use of net entry rates defined at the size class level. The degree of size disaggregation used in this paper is considerably finer than used before. Five employment-defined size classes have been used instead of sliding cut-off points discriminating between small and large firms. Unlike other research using pooled models to explain variation in entry (exit) rates across industries, the data used here are characterised by the absence of significant industry-specific systematic variation. Overall, the results obtained in this paper indicate that there is a gradation in the responses of different size classes to stimuli defined at the industry level. Evidence is offered that small firms are different in that they manage to overcome entry barriers, perhaps adopting different survival strategies, and that large firms are well aware of market conditions and are in an advantageous position to overcome many of the problems imposed by entry barriers. Size classes in the middle of the size class distribution offer a rather mixed result due to size-related advantages and disadvantages.

Small firm entry in manufacturing industries: Lower Saxony, 1979?1989

This paper is an empirical study of inter-industry and inter-temporal variations in entry of new firms using longitudinal data covering all manufacturing establishments in Lower Saxony between 1979 and 1989. Patterns of entry are reported for 29 industries based on numbers of new firms, gross rates of entry, and entry intensities (shares of employees) in different types and size classes of new firms. Entry varies considerably between firm types, industries, and over time. Focussing on entry by small single firms an empirical model is applied to search for industry characteristics that are highly correlated with entry. Pooling of cross-section and time-series data allows to control for influences of varying macroeconomic conditions and unobserved industry characteristics. A highly robust estimation method is applied for the first time in a study of entry rates, and it turns out that extreme observations often have large effect on the results. Entry intensity tends to be positively related to industry growth, concentration, and high unemployment, but negatively to high interest rates, profits, and (insignificantly) to intensive use of capital and R&D. I plead for further research vialearning by asking those who are doing.

DEVELOPMENTS IN THE GROWTH, LOCATION AND TURBULENCE OF BUSINESS SERVICES IN FINLAND

ABSTRACT This paper analyzes the developments in the location of business services in Finland, with special reference to the regional variation in entry and exit rates of firms. Business service industries have grown very rapidly in Finland in the same way as in other countries. The supply of business services is typically highly centralized. In Finland, concentration diminished with the acceleration I the growth of manufacturing in the less advanced regions during the 1970s. this had the effect of stimulating the market for business service firms. The different development phases faced by regions are proposed as a possible explanation for regional variations. In most cases, turbulence seemed also to be higher for newer or more innovative industries.

Regional differences in small firm entry in manufacturing industries: Lower Saxony, 1979–1991†

This paper is an empirical study of inter-regional and inter-temporal variations in entry of new firms using longitudinal data covering all manufacturing establishments in Lower Saxony between 1979 and 1991. Patterns of entry are reported for sixteen regions based on gross rates of entry (number of new firms) and entry intensities (shares of employees). An empirical model is applied to detect regional characteristics that are highly correlated with entry. Pooling of cross-section and time-series data allows for control of influences of varying macroeconomic conditions and unobserved regional characteristics that turned out to be important. Small firm entry tends to be positively related to high overall economic growth, and to be higher in regions where both the small firm employment share and the level of wealth are high while the wage rate is low. We find no evidence for a negative impact of the business tax rate or for a positive effect of regional subsidies.