000			01377nab a22001817a 4500
008			160615b2014 xxu||||| |||| 00| 0 eng d
100			_aCalcagno, Peter T
245			_aRegulatory costs on entrepreneurship and establishment emplo _cCalcagno, Peter T.
260			_c2014
300			_a541-559
520			_aIn this article, we examine how the level of regulation affects the size distribution of businesses. To the extent that regulation functions as a fixed cost, it should lead to larger firm size. However, regulations may also lead to smaller establishments with firms outsourcing regulated activities or staying small to take advantage of state exemptions for small businesses from regulations. We empirically examine the relationship between the size distribution of establishments and the level of regulation using state- and industry-level panel data from 1992 to 2004. Our results suggest that regulation decreases the proportion of zero employee and 1-4 employee establishments. The proportion of establishments in the 5-9 employee range generally increases with the level of regulation. Thus, regulation appears to operate as a fixed cost causing establishments to be larger.
650			_aEntrepreneurship
650			_aSmall Business
650			_aEstablishments
650			_aFirm Size
650			_aRegulation
773			_aSmall Business Economics _dMarch
999			_c41599 _d41599