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Contribution Details

Type Journal Article
Scope Discipline-based scholarship
Title The impact of labour market regulations on (potential) entrepreneurs: the case of Germany
Organization Unit
Authors
  • P Moog
  • Uschi Backes-Gellner
Item Subtype Original Work
Refereed Yes
Status Published in final form
Language
  • English
Journal Title International Journal of Entrepreneurship and Innovation Management
Publisher Inderscience
Geographical Reach international
ISSN 1368-275X
Volume 10
Number 1
Page Range 53 - 70
Date 2009
Abstract Text This paper explores the impact of German labour market regulations on the willingness of labour market entrants to start their own business. We study the legal situation, the actual and the perceived constraints imposed on businesses as well as the actual flexibility available of start-ups. We find strong evidence that labour market regulations are often misperceived in Germany. Furthermore, these misperceptions distort the willingness to become selfemployed. Start-ups are de jure hardly affected by labour market regulations because of a large number of exemptions. They are able to use a number of flexibility measures and thereby avoid regulatory restrictions. However, perceptions are quite the opposite, particularly in legal areas with high media coverage. This leads to a strong reluctance of labour market entrants to consider a start-up. Thus, measures aiming at increasing entrepreneurship should place strong emphasis on accurate knowledge of regulatory constraints and particularly in Germany, on less sceptical media coverage.
Related URLs
Digital Object Identifier 10.1504/IJEIM.2009.024674
Other Identification Number merlin-id:988
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