firms (entrepreneurship) and the average quality of management (meritocracy). Legal reform also reduces financial … improve meritocracy at the expense of entrepreneurship. As a result, legal reform encounters less political opposition than …

. A second class of theories hypothesizes that some places are endowed with a greater supply of entrepreneurship. Evidence … on sales per worker does not support the higher returns for entrepreneurship rationale. Our evidence suggests that … entrepreneurship is higher when fixed costs are lower and when there are more entrepreneurial people …

firms (entrepreneurship) and the average quality of management (meritocracy). Legal reform also reduces financial … improve meritocracy at the expense of entrepreneurship. As a result, legal reform encounters less political opposition than …