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ResearchPaper
2018
Does regulation trade-off quality against inequality? : The case of German architects and construction engineers
Does regulation trade-off quality against inequality? : The case of German architects and construction engineers
Abstract (English)
We exploit an exogenous price increase by about 10% for architectural services to answer the question how price regulation affects income inequality and service quality. Using individual-level data from the German microcensus for the years 2006 to 2012, we find a significant reform effect of 8% on personal net income for self-employed architects and construction engineers. This group moved from the second lowest to the highest quintile of the net income distribution. This increase in inequality is associated with a deterioration of service quality. The reform reduced average scores of a peer ranking for architects by 18%.
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Hohenheim discussion papers in business, economics and social sciences; 2018,23
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Faculty of Business, Economics and Social Sciences
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Institute of Economics
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English
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330 Economics