Product Market Deregulation and Employment Outcomes: Evidence from the German Retail Sector

Charlotte Senftleben-König

VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy from Verein für Socialpolitik / German Economic Association

Abstract: This paper investigates the effects of the deregulation of shop-opening hours legislation on retail employment in Germany. In 2006, the legislative competence was shifted from the federal to the state level, leading to a gradual deregulation of shop opening restrictions in most of Germany s sixteen federal states. The paper exploits regional variation in the legislation in order to identify the effect of product market deregulation on retail employment. We find robust evidence that the deregulation had negative effects on retail employment, with considerable heterogeneity in terms of the type of employment as well as establishment size. Employment losses are most pronounced for small retail stores and are almost exclusively borne by full-time employees.

JEL-codes: J21 L51 L81 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc14:100539

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