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Entry regulations and labor market outcomes: evidence from the Italian retail trade sector

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  • Eliana Viviano

    () (Banca d'Italia)

Abstract

The paper analyzes the relationship between barriers to entry and employment in the Italian retail trade sector. In Italy the opening of large outlets is regulated at the regional level. By using differences-in-differences estimators I study the effects of the rules implemented in Abruzzo and Marche, two otherwise close and similar Italian regions, that adopted very different policies: the first set tight restrictions on the opening of large stores; the second did not impose substantial entry barriers. The results show that entry barriers have a negative and sizeable impact on employment growth. Some evidence is also found that fiercer competition encourages the development of more efficient small retail trade shops. These findings are robust to a number of checks.

Suggested Citation

  • Eliana Viviano, 2006. "Entry regulations and labor market outcomes: evidence from the Italian retail trade sector," Temi di discussione (Economic working papers) 594, Bank of Italy, Economic Research and International Relations Area.
  • Handle: RePEc:bdi:wptemi:td_594_06
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    References listed on IDEAS

    as
    1. Neumark, David & Zhang, Junfu & Ciccarella, Stephen, 2008. "The effects of Wal-Mart on local labor markets," Journal of Urban Economics, Elsevier, vol. 63(2), pages 405-430, March.
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    5. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, Oxford University Press, vol. 119(1), pages 249-275.
    6. David Flath, 2003. "Regulation, Distribution Efficiency, and Retail Density," NBER Working Papers 9450, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Susanne Prantl, 2012. "The impact of firm entry regulation on long-living entrants," Small Business Economics, Springer, vol. 39(1), pages 61-76, July.
    2. Haidar, Jamal Ibrahim, 2012. "The impact of business regulatory reforms on economic growth," Journal of the Japanese and International Economies, Elsevier, pages 285-307.
    3. Davud Rostam-Afschar, 2014. "Entry regulation and entrepreneurship: a natural experiment in German craftsmanship," Empirical Economics, Springer, vol. 47(3), pages 1067-1101, November.
    4. Fabiano Schivardi & Eliana Viviano, 2011. "Entry Barriers in Retail Trade," Economic Journal, Royal Economic Society, vol. 121(551), pages 145-170, March.
    5. Senftleben-König, Charlotte, 2014. "Product Market Deregulation and Employment Outcomes: Evidence from the German Retail Sector," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100539, Verein für Socialpolitik / German Economic Association.
    6. Fernando Borraz & Juan Dubra & Daniel Ferrés & Leandro Zipitría, 2014. "Supermarket Entry and the Survival of Small Stores," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 44(1), pages 73-93, February.
    7. Charlotte Senftleben-König, 2014. "Product Market Deregulation and Employment Outcomes: Evidence from the German Retail Sector," SFB 649 Discussion Papers SFB649DP2014-013, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
    8. Andrea Brandolini & Piero Casadio & Piero Cipollone & Marco Magnani & Alfonso Rosolia, 2007. "Employment Growth in Italy in the 1990s: Institutional Arrangements and Market Forces," AIEL Series in Labour Economics,in: Nicola Acocella & Riccardo Leoni (ed.), Social Pacts, Employment and Growth. A Reappraisal of Ezio Tarantelli’s Thought, edition 1, chapter 4, pages 31-68 AIEL - Associazione Italiana Economisti del Lavoro.
    9. Raffaella Sadun, 2015. "Does Planning Regulation Protect Independent Retailers?," The Review of Economics and Statistics, MIT Press, vol. 97(5), pages 983-1001, December.
    10. Ad van Riet & Moreno Roma, 2006. "Competition, productivity and prices in the euro area services sector," Occasional Paper Series 44, European Central Bank.
    11. Franco Amatori & Matteo Bugamelli & Andrea Colli, 2011. "Italian Firms in History: Size, Technology and Entrepreneurship," Quaderni di storia economica (Economic History Working Papers) 13, Bank of Italy, Economic Research and International Relations Area.
    12. Yun Jeong Choi & Jee Young Kim & Min Hee You, 2017. "Radius Restriction and Firms' Survival: Evidence from the Coffee Franchise Industry," Working papers 2017rwp-115, Yonsei University, Yonsei Economics Research Institute.
    13. Eliana Viviano & Luciana Aimone Gigio & Emanuela Ciapanna & Daniele Coin & Fabrizio Colonna & Federica Lagna & Raffaele Santioni, 2012. "The retail trade sector and the food industry in Italy," Questioni di Economia e Finanza (Occasional Papers) 119, Bank of Italy, Economic Research and International Relations Area.
    14. Bassanini, Andrea, 2015. "A Bitter Medicine? Short-term Employment Impact of Deregulation in Network Industries," IZA Discussion Papers 9187, Institute for the Study of Labor (IZA).
    15. Fernando Borraz & Juan Dubra & Daniel Ferrés & Leandro Zipitría, 2013. "Supermarket Entry and The Survival of Small Stores," Documentos de Trabajo/Working Papers 1303, Facultad de Ciencias Empresariales y Economia. Universidad de Montevideo..
    16. Javier de la Ballina Ballina & Rodolfo Vázquez, 2015. "El papel de las bluelaws en los modelos de evolución de los for¬matos comerciales," Hacienda Pública Española, IEF, vol. 213(2), pages 63-82, June.
    17. Silberberger, Magdalene & Königer, Jens, 2016. "Regulation, trade and economic growth," Economic Systems, Elsevier, vol. 40(2), pages 308-322.
    18. Zipitría, Leandro, 2011. "Impacto económico del Supermercadismo
      [The Economics of Supermarkets: A Brief Literature Review]
      ," MPRA Paper 28419, University Library of Munich, Germany.
    19. Charlotte Senftleben-König, 2014. "Product Market Deregulation and Employment Outcomes: Evidence from the German Retail Sector," Working Papers 2014009, Berlin Doctoral Program in Economics and Management Science (BDPEMS).
    20. Basker, Emek, 2011. "The Causes and Consequences of Wal-Mart’s Growth," Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 5, pages 110-134.
    21. Fernando Borraz & Juan Dubra & Daniel Ferrés & Leandro Zipitría, 2009. "Supermarket Entry and its effect on small stores in Montevideo, 1998 to 2007," Documentos de trabajo 2009005, Banco Central del Uruguay.
    22. M.ª de los Llanos Matea & Juan S. Mora, 2009. "Developments in retail trade regulation in Spain and their macroeconomic implications," Working Papers 0908, Banco de España;Working Papers Homepage.
    23. Pozzi, Andrea & Schivardi, Fabiano, 2015. "Entry Regulation in Retail Markets," CEPR Discussion Papers 10836, C.E.P.R. Discussion Papers.

    More about this item

    Keywords

    entry barriers; employment growth; differences-in-differences estimator;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law

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