Abstract
This study investigates how state-level fiscal and labor policies influence the creation of hospitality firms in the United States from 2002 to 2022. Using a panel dataset and fixed- effects models with Driscoll-Kraay standard errors, we analyze the effects of corporate, sales, property, and income taxes, along with minimum wage laws and educational attain- ment. We separate the results among accommodation and food service subsectors to iden- tify specific policy sensitivities. Our findings disclose that tax and labor policy impacts are highly sector-specific and context-dependent. Especially, minimum wage increases are pos- itively associated with firm formation in lower-income, lower-education states, but this effect weakens in more wealthy, higher-education contexts. These results challenge general as- sumptions about tax and wage policy effects and highlight the importance of institutional and socioeconomic setting in affecting firm formation within the hospitality sector.
Keywords
Hospitality entrepreneurship, fiscal policy, taxation, labor regulation, firm for- mation, panel data analysis
Recommended Citation
Altin, Mehmet
(2025)
"How Fiscal and Labor Policies Influence Hospitality Entrepre- neurship: A Panel Data Analysis,"
Journal of Hospitality Financial Management: Vol. 33:
Iss.
2, Article 5.
Available at:
https://stars.library.ucf.edu/jhfm/vol33/iss2/5
