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Firm Entry Deregulation, Competition and Returns to Education and Skill

Author

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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%.

Suggested Citation

  • Fernandes, Ana & Ferreira, Priscila & Winters, L. Alan, 2013. "Firm Entry Deregulation, Competition and Returns to Education and Skill," CEPR Discussion Papers 9550, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:9550
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    Cited by:

    1. Priscila Ferreira, 2015. "Market competition and executive pay," IZA World of Labor, Institute for the Study of Labor (IZA), pages 115-115, January.
    2. Fernandes, Ana & Ferreira, Priscila & Winters, L. Alan, 2014. "The Effect of Competition on Managers’ Compensation: Evidence From a Quasi-natural Experiment," CEPR Discussion Papers 10054, C.E.P.R. Discussion Papers.

    More about this item

    Keywords

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

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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