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Firm Entry Deregulation, Competition and Returns to Education and Skill

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  • Fernandes, Ana
  • Ferreira, Priscila
  • Winters, L. Alan

Abstract

This paper investigates the effects of firm entry deregulation. We exploit a recent reform that simplified business entry in Portugal as a quasi-natural experiment. We use cross-municipality-year variation in the implementation of the reform for identification. Using matched employer-employee data for the universe of workers and firms, we find that the reform is associated with increased firm entry and competition within industries and regions. The returns to a university degree increased by 5% while the returns to skills increased by 3%.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 9550.

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Date of creation: Jul 2013
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Handle: RePEc:cpr:ceprdp:9550

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Keywords: Entry Deregulation; Product Market Competition; Returns to Education; Wage Structure;

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