Thinking beyond boundaries: The impact of licensing and occupational regulation on entrepreneurship and innovation

The project asks three questions: (1) How significant is licensing in suppressing innovation? The answer requires analysis of the likelihood that a licensed worker moves into entrepreneurship, and whether the market processes surrounding licensing enhance or reduce self-employment. (2) Are there certain populations (i.e. genders, races, immigration status, age, etc.) for whom licensing constitutes a more difficult hurdle to overcome? (3) Does licensing help maintain entrepreneurship? It is not enough for workers to engage in business development. The optimal environment would also enhance sustainable entrepreneurship. My past work demonstrated that licensing results in the creation of secondary institutions, which may help entrepreneurs maintain business ownership. Additionally, licensing enhances both skill and credibility with consumers, which may increase firm sustainability.