Studying the effect of obtaining licenses or operation on enterprises: Methodological notes from a study in Lima, Peru

Comparing firms who got the operating license of operation with firms who did not get the license is not a valid procedure Variables unobserved by the researcher (for example entrepreneurship, growth perspectives, etc) affect whether firms get a license or not and also affect outcome variables The encouragement approach is one methodological strategy to deal with this problem. Click here to read more…

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