Does Entry Regulation Hinder Job Creation? Evidence from the French Retail Industry

58 Pages Posted: 20 Nov 2001

See all articles by Marianne Bertrand

Marianne Bertrand

University of Chicago - Booth School of Business; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Francis Kramarz

Independent

Multiple version iconThere are 3 versions of this paper

Date Written: November 2001

Abstract

Are product market and entry regulation key sources of low employment growth in many European countries? We investigate this question in the context of the French retail industry. Since 1974, approval by regional zoning boards has been required for the creation or extension of any large retail store in France. We exploit a unique database that provides time and region specific variation in boards' approval decisions. We show that stronger deterrence of entry by the boards, and the increase in large retail chains' concentration it induced, slowed down employment growth in France.

Keywords: Zoning regulation, employment, retail trade

JEL Classification: J23, L43, L81

Suggested Citation

Bertrand, Marianne and Kramarz, Francis, Does Entry Regulation Hinder Job Creation? Evidence from the French Retail Industry (November 2001). CEPR Discussion Paper No. 3039. Available at SSRN: https://ssrn.com/abstract=291559

Marianne Bertrand (Contact Author)

University of Chicago - Booth School of Business ( email )

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HOME PAGE: http://gsbwww.uchicago.edu/fac/marianne.bertrand/vita/cv_0604.pdf

National Bureau of Economic Research (NBER) ( email )

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Centre for Economic Policy Research (CEPR)

London
United Kingdom

Francis Kramarz

Independent

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