Firm Entry Deregulation, Competition and Returns to Education and Skill

37 Pages Posted: 9 Jul 2013

See all articles by Ana Fernandes

Ana Fernandes

University of Bern - Department of Economics

Priscila Ferreira

University of Minho - Dep. Economics; University of Minho - Applied Microeconomics Research Unit (NIMA)

L. Alan Winters

University of Sussex; IZA Institute of Labor Economics; Centre for Economic Policy Research (CEPR)

Date Written: July 2013

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%.

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

JEL Classification: J3

Suggested Citation

Fernandes, Ana and Ferreira, Priscila and Winters, L. Alan Alan, Firm Entry Deregulation, Competition and Returns to Education and Skill (July 2013). CEPR Discussion Paper No. DP9550, Available at SSRN: https://ssrn.com/abstract=2291371

Ana Fernandes (Contact Author)

University of Bern - Department of Economics ( email )

Schanzeneckstrasse 1
Bern, CH-3001
Switzerland

Priscila Ferreira

University of Minho - Dep. Economics ( email )

Universidade do Minho
EEG
Braga, 4710-057
Portugal
00351253604584 (Phone)
00351253676375 (Fax)

HOME PAGE: http://www.eeg.uminho.pt/economia/priscila

University of Minho - Applied Microeconomics Research Unit (NIMA) ( email )

Braga, 4710-057
Portugal
+351253601930 (Phone)

HOME PAGE: http://nima.eeg.uminho.pt/

L. Alan Alan Winters

University of Sussex ( email )

Sussex House
Falmer
Brighton, Sussex BNI 9RH
United Kingdom

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
0
Abstract Views
371
PlumX Metrics