Firm entry deregulation, competition and returns to education and skill
Fernandes, Ana P.; Winters, L. Alan; Ferreira, Priscila
Date: 1 August 2014
Journal
European Economic Review
Publisher
Elsevier
Publisher DOI
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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 ...
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.
Economics
Faculty of Environment, Science and Economy
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