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Economic Effects of Deregulation - Using the Example of the Revised Trade and Crafts Code 2004

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  • Müller, Klaus

Abstract

This paper examines the effects of the reform of the German Trade and Crafts Code of 2004, which removed entry requirements in 54 out of 95 crafts occupations. Since then, the Meister degree (advanced dual training degree) is no longer a prerequisite for opening a business in these occupations. The topic is highly relevant as there is an ongoing debate about the advantages and disadvantages of the regulation of occupations on the European level. The lack of suitable control group represents a major challenge of this analysis. Nevertheless, it can be argued that the goals brought forward by proponents of deregulation have not been achieved. Neither was there a major expansion of employment in the crafts sector, nor do we observe positive effects on training.

Suggested Citation

  • Müller, Klaus, 2016. "Economic Effects of Deregulation - Using the Example of the Revised Trade and Crafts Code 2004," ifh Working Papers 5 (2016), Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    • Handle: RePEc:zbw:ifhwps:52016
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