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ResearchPaper
2018

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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Publication series

Hohenheim discussion papers in business, economics and social sciences; 2018,23

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Faculty
Faculty of Business, Economics and Social Sciences
Institute
Institute of Economics

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Language
English

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Classification (DDC)
330 Economics

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BibTeX

@techreport{Strohmaier2018, url = {https://hohpublica.uni-hohenheim.de/handle/123456789/6311}, author = {Strohmaier, Kristina and Rostam-Afschar, Davud}, title = {Does regulation trade-off quality against inequality? : The case of German architects and construction engineers}, year = {2018}, school = {Universität Hohenheim}, series = {Hohenheim discussion papers in business, economics and social sciences}, }