Product Market Deregulation and Employment Outcomes: Evidence from the German Retail Sector
AbstractThis paper investigates the short- and medium-term effects of the deregulation of shopopening hours legislation on retail employment in Germany. In 2006, the legislative competence was shifted from the federal to the state level, leading to a gradual deregulation of shop opening restrictions in most of Germany’s sixteen federal states. The paper exploits regional variation in the legislation in order to identify the effect product market deregulation has on retail employment. We find robust evidence that the deregulation of shop closing legislation had negative effects on retail employment, with considerable heterogeneity in terms of the type of employment as well as establishment size. That is, the employment losses are most pronounced for small retail stores and are almost exclusively borne by full-time employees.
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Bibliographic InfoPaper provided by Sonderforschungsbereich 649, Humboldt University, Berlin, Germany in its series SFB 649 Discussion Papers with number SFB649DP2014-013.
Length: 21 pages
Date of creation: Jan 2014
Date of revision:
Product market regulation; Employment; Retail trade;
Find related papers by JEL classification:
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
- L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
- L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-02-08 (All new papers)
- NEP-EUR-2014-02-08 (Microeconomic European Issues)
- NEP-IND-2014-02-08 (Industrial Organization)
- NEP-LAB-2014-02-08 (Labour Economics)
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