Papers written by Author(s): 'Marek Zapletal'
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Working PaperBrighter Prospects? Assessing the Franchise Advantage using Census Data
January 2017
Working Paper Number:
CES-17-21
This paper uses Census micro data to examine how starting a business as a franchise rather than an independent business affects its survival and growth prospects. We first consider the factors that influence the business owner's decision about being franchised, and then use different empirical approaches to correct for selection bias in our performance analyses. We find that franchised businesses on average benefit from higher survival rates and faster initial growth relative to independent businesses. However, the effects are not large and, conditional on first-year survival, the differences basically disappear. We briefly discuss potential mechanisms to explain these results. U.S. Census Bureau. All results have been reviewed to ensure that no confidential information is disclosed. Support for this research at the Michigan Census Research Data Center is gratefully acknowledged.View Full Paper PDF
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Working PaperThe Effects of Occupational Licensing Evidence from Detailed Business-Level Data
January 2017
Working Paper Number:
CES-17-20
Occupational licensing regulation has increased dramatically in importance over the last several decades, currently affecting more than one thousand occupations in the United States. I use confidential U.S. Census Bureau micro-data to study the relationship between occupational licensing and key business outcomes, such as number of practitioners, prices for consumers, and practitioners' entry and exit rates. The paper sheds light on the effect of occupational licensing on industry dynamics and intensity of competition, and is the first to study the effects on providers of required occupational training. I find that occupational licensing regulation does not affect the equilibrium number of practitioners or prices of services to consumers, but reduces significantly practitioner entry and exit rates. I further find that providers of occupational licensing training, namely, schools, are larger and seem to do better, in terms of revenues and gross margins, in states with more stringent occupational licensing regulation.View Full Paper PDF
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