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

Eliana Viviano

No 594, Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area

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.

Keywords: entry barriers; employment growth; differences-in-differences estimator (search for similar items in EconPapers)
JEL-codes: J21 J23 K23 (search for similar items in EconPapers)
Date: 2006-05
New Economics Papers: this item is included in nep-com, nep-eec, nep-law and nep-reg
References: Add references at CitEc
Citations: View citations in EconPapers (7)

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Journal Article: Entry regulations and labour market outcomes: Evidence from the Italian retail trade sector (2008) Downloads
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