We examine the relationship between entry regulations and income inequality. Entry regulations increase the cost of legally starting a business relative to the alternatives — working for someone else, entering illegally, or exiting the labor force. We hypothesize that such regulations may...

We examine the relationship between entry regulations and income inequality. Entry regulations increase the cost of legally starting a business relative to the alternatives working for someone else, entering illegally, or exiting the labor force. We hypothesize that such regulations may cause...