Firm entry deregulation, competition and returns to education and skill

Winters, L Alan, Fernandes, Ana P and Ferreira, Priscila (2014) Firm entry deregulation, competition and returns to education and skill. European Economic Review, 70. pp. 210-230. ISSN 0014-2921

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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.

Item Type: Article
Schools and Departments: School of Business, Management and Economics > Economics
Subjects: H Social Sciences
Depositing User: Joy Blake
Date Deposited: 03 Mar 2016 12:49
Last Modified: 03 Mar 2016 12:49
URI: http://sro.sussex.ac.uk/id/eprint/59815
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