Economics at your fingertips  

Earning or learning? The impact of relaxing shop opening hours restrictions on youth employment, education and earnings

Simon Bensnes and Bjarne Strøm

Working Paper Series from Department of Economics, Norwegian University of Science and Technology

Abstract: Many countries have recently removed or relaxed restrictions on shop opening hours. If deregulation increases job opportunities for unskilled young people it may affect incentives to make education investments. This paper studies the impact of deregulation of shop opening hours on youth employment, schooling decisions and subsequent earnings. We use a national reform in shop opening hour restrictions in Norway in 1985 to provide quasiexperimental evidence by exploiting that the bite of the reform varied considerably across municipalities. We find that increased potential opening hours substantially reduced the average probability to graduate from high school and especially so for the group of students with less educated parents. These students also experienced a reduction in completed years of education and some earnings reduction in adulthood. Combined with the finding that deregulation increased employment of 16-24 year old workers in the retail sector by 12% on average, the evidence is consistent with the view that opportunity cost of study time is an important determinant of human capital investments.

Keywords: high school graduation; earnings; employment; deregulation; opening hours (search for similar items in EconPapers)
JEL-codes: J24 (search for similar items in EconPapers)
Pages: 61 pages
Date: 2015-07-15
New Economics Papers: this item is included in nep-edu, nep-eur and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in Working Paper Series from Department of Economics, Norwegian University of Science and Technology Contact information at EDIRC.
Bibliographic data for series maintained by Anne Larsen ().

Page updated 2022-09-28
Handle: RePEc:nst:samfok:16515