Firm entry deregulation, competition and returns to education and skill

Ana Fernandes, Priscila Ferreira () and L. Winters

European Economic Review, 2014, vol. 70, issue C, 210-230

Abstract: This paper studies the effect of firm entry deregulation on the returns to skill and education. We exploit a comprehensive episode of entry deregulation, unique in the industrialized world, as a quasi-natural experiment. Using matched employer–employee data for the universe of workers and firms in Portugal, we show that increased product market competition, which resulted from deregulation, increased the returns to a university degree and the returns to skill. We verify that our results are not driven by changes in employment composition, and are unlikely to be driven by skill-biased technical change, or by workers who change skill levels after the deregulation.

Keywords: Entry; Deregulation; Product market competition; Wage structure; Returns to education (search for similar items in EconPapers)
JEL-codes: J3 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (17)

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Related works:
Working Paper: Firm Entry Deregulation, Competition and Returns to Education and Skill (2013)
Working Paper: Firm Entry Deregulation, Competition and Returns to Education and Skill (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:70:y:2014:i:c:p:210-230

DOI: 10.1016/j.euroecorev.2014.04.004

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