Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
959532 | Journal of Financial Economics | 2012 | 14 Pages |
Abstract
This paper examines the impact of financial deregulation on entrepreneurship. We assess the impact of credit card deregulation on transitions into self-employment using state-level removal of credit card interest rate ceilings following the US Supreme Court's 1978 Marquette decision as a quasi-natural experiment. We find that credit card deregulation increases the probability of entrepreneurial entry, with a particularly strong effect for black entrepreneurs. We demonstrate that these effects are magnified in states with a history of racial discrimination and link the results to discrimination-based barriers to entry.
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Authors
Aaron K. Chatterji, Robert C. Seamans,