Title: Firm Entry Deregulation, Competition and Returns to Education and Skill
Abstract: This paper investigates the effects of firm entry deregulation. We exploit a recent reform that simplified business entry in Portugal as a quasi-natural experiment. We use cross-municipality-year variation in the implementation of the reform for identification. Using matched employer-employee data for the universe of workers and firms, we find that the reform is associated with increased firm entry and competition within industries and regions. The returns to a university degree increased by 5% while the returns to skills increased by 3%.
Publication Year: 2013
Publication Date: 2013-07-01
Language: en
Type: article
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Cited By Count: 1
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