IDEAS home Printed from https://ideas.repec.org/p/ehl/lserod/61156.html
   My bibliography  Save this paper

Evaluating the impact of Sunday trading deregulation

Author

Listed:
  • Danchev, Svetoslav
  • Genakos, Christos

Abstract

During the past few decades a number of European countries lifted the regulations that restricted the opening hours of shops on Sunday. In this paper we examine the impact of Sunday trade deregulation on employment, expenditure, prices and market structure using a difference-in-difference empirical framework and data from 30 European countries over the period 1999-2013. The results exhibit significant heterogeneity across products and sectors. We find robust evidence of a positive overall impact on employment. Expenditure also increases, but not for all retail product categories. We find no evidence of a significant impact on prices. Our findings have important policy implications, particularly for governments that try to combat high unemployment in the aftermath of the economic crisis.

Suggested Citation

  • Danchev, Svetoslav & Genakos, Christos, 2015. "Evaluating the impact of Sunday trading deregulation," LSE Research Online Documents on Economics 61156, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:61156
    as

    Download full text from publisher

    File URL: http://eprints.lse.ac.uk/61156/
    File Function: Open access version.
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Card, David & Krueger, Alan B, 1994. "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania," American Economic Review, American Economic Association, vol. 84(4), pages 772-793, September.
    2. Inderst, Roman & Irmen, Andreas, 2005. "Shopping hours and price competition," European Economic Review, Elsevier, vol. 49(5), pages 1105-1124, July.
    3. Commission, Productivity, 2011. "Economic Structure and Performance of the Australian Retail Industry," Inquiry Reports, Productivity Commission, Government of Australia, number 56.
    4. de Meza, David, 1984. "The Fourth Commandment: Is it Pareto Efficient?," Economic Journal, Royal Economic Society, vol. 94(374), pages 379-383, June.
    5. Skuterud, Mikal, 2005. "The impact of Sunday shopping on employment and hours of work in the retail industry: Evidence from Canada," European Economic Review, Elsevier, vol. 49(8), pages 1953-1978, November.
    6. Bossler, Mario & Oberfichtner, Michael, 2014. "The employment effect of deregulating shopping hours: Evidence from German retailing," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100506, Verein für Socialpolitik / German Economic Association.
    7. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 249-275.
    8. Clemenz, Gerhard, 1990. "Non-sequential consumer search and the consequences of a deregulation of trading hours," European Economic Review, Elsevier, vol. 34(7), pages 1323-1337, November.
    9. Jonathan Gruber & Daniel M. Hungerman, 2008. "The Church Versus the Mall: What Happens When Religion Faces Increased Secular Competition?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(2), pages 831-862.
    10. Dirk Pilat, 1997. "Regulation and Performance in the Distribution Sector," OECD Economics Department Working Papers 180, OECD Publishing.
    11. Maarten Goos, 2004. "Sinking the Blues: the Impact of Shop Closing Hours on Labor and Product Markets," CEP Discussion Papers dp0664, Centre for Economic Performance, LSE.
    12. Raymond Gradus, 1996. "The economic effects of extending shop opening hours," Journal of Economics, Springer, vol. 64(3), pages 247-263, October.
    13. Karthik Reddy, 2012. "Price Effects Of Shopping Hours Regulation: Evidence From Germany," Economic Affairs, Wiley Blackwell, vol. 32(1), pages 48-54, February.
    14. Tanguay, Georges & Vallee, Luc & Lanoie, Paul, 1995. "Shopping Hours and Price Levels in the Retailing Industry: A Theoretical and Empirical Analysis," Economic Inquiry, Western Economic Association International, vol. 33(3), pages 516-524, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aleksandra Grzesiuk, 2021. "Sunday Trading Ban in Poland: Reflection After Three Years," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 3), pages 233-242.
    2. Mai Yamada, 2019. "Business Hours, Store Quality, and Social Welfare," Journal of Industry, Competition and Trade, Springer, vol. 19(3), pages 465-478, September.
    3. Dominique Goux & Eric Maurin, 2022. "Who will work on Sunday? The winners and losers of Sunday laws relaxation," PSE Working Papers halshs-03884675, HAL.
    4. Marta Borowska-Stefańska & Michał Kowalski & Paulina Kurzyk & Alireza Sahebgharani & Szymon Wiśniewski, 2022. "Spatiotemporal Changeability of the Load of the Urban Road Transport System under Permanent and Short-Term Legal and Administrative Retail Restrictions," Sustainability, MDPI, vol. 14(9), pages 1-30, April.
    5. Borowska-Stefańska, Marta & Dulebenets, Maxim A. & Horňák, Marcel & Kowalski, Michał & Kozłowski, Dominik & Turoboś, Filip & Wiśniewski, Szymon, 2023. "Assessing the effects of Sunday shopping restrictions on urban mobility patterns in Poland," Journal of Transport Geography, Elsevier, vol. 113(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Charlotte Senftleben-König, "undated". "Product Market Deregulation and Employment Outcomes: Evidence from the German Retail Sector," BDPEMS Working Papers 2014009, Berlin School of Economics.
    2. Senftleben-König, Charlotte, 2014. "Product market deregulation and employment outcomes: Evidence from the German retail sector," SFB 649 Discussion Papers 2014-013, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.
    3. Paul, Annemarie, 2015. "After work shopping? Employment effects of a deregulation of shop opening hours in the German retail sector," European Economic Review, Elsevier, vol. 80(C), pages 329-353.
    4. Senftleben-König, Charlotte, 2014. "Product Market Deregulation and Employment Outcomes: Evidence from the German Retail Sector," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100539, Verein für Socialpolitik / German Economic Association.
    5. repec:hum:wpaper:sfb649dp2014-013 is not listed on IDEAS
    6. Elbert Dijkgraaf & Raymond Gradus, 2007. "Explaining Sunday Shop Policies," De Economist, Springer, vol. 155(2), pages 207-219, June.
    7. Inderst, Roman & Irmen, Andreas, 2005. "Shopping hours and price competition," European Economic Review, Elsevier, vol. 49(5), pages 1105-1124, July.
    8. repec:bla:germec:v:11:y:2010:i::p:511-526 is not listed on IDEAS
    9. Tobias Wenzel, 2010. "Liberalization of Opening Hours with Free Entry," German Economic Review, Verein für Socialpolitik, vol. 11(4), pages 511-526, November.
    10. Mai Yamada, 2019. "Business Hours, Store Quality, and Social Welfare," Journal of Industry, Competition and Trade, Springer, vol. 19(3), pages 465-478, September.
    11. Michael C Burda & Philippe Weil, 2004. "Blue Laws," SciencePo Working papers Main hal-01065499, HAL.
    12. Oz Shy & Rune Stenbacka, 2008. "Price Competition, Business Hours and Shopping Time Flexibility," Economic Journal, Royal Economic Society, vol. 118(531), pages 1171-1195, August.
    13. Shy, Oz & Stenbacka, Rune, 2006. "Service hours with asymmetric distributions of ideal service time," International Journal of Industrial Organization, Elsevier, vol. 24(4), pages 763-771, July.
    14. Lucia Rizzica & Giacomo Roma & Gabriele Rovigatti, 2020. "The effects of shop opening hours deregulation: evidence from Italy," Temi di discussione (Economic working papers) 1281, Bank of Italy, Economic Research and International Relations Area.
    15. Samuel Haas & Daniel Herold & Jan T. Schäfer, 2020. "Shopping Hours and Entry - an Empirical Analysis of Aldi’s Opening Hours," Journal of Industry, Competition and Trade, Springer, vol. 20(1), pages 139-156, March.
    16. Aleksandra Grzesiuk, 2021. "Sunday Trading Ban in Poland: Reflection After Three Years," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 3), pages 233-242.
    17. Samuel de Haas & Daniel Herold & Jan T. Schaefer, 2017. "Shopping hours and entry - An empirical analysis of Aldi's opening hours," MAGKS Papers on Economics 201751, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    18. Kosfeld, Michael, 2002. "Why shops close again: An evolutionary perspective on the deregulation of shopping hours," European Economic Review, Elsevier, vol. 46(1), pages 51-72, January.
    19. Yamada, Mai, 2020. "The Regulation Level of Business Hours," MPRA Paper 101392, University Library of Munich, Germany.
    20. Wenzel, Tobias, 2007. "Liberalization of Opening Hours with Free Entry," Ruhr Economic Papers 13, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    21. Simon Søbstad Bensnes & Bjarne Strøm, 2015. "Earning or learning? The impact of relaxing shop opening hours restrictions on youth employment, education and earnings," Working Paper Series 16515, Department of Economics, Norwegian University of Science and Technology.
    22. Skuterud, Mikal, 2005. "The impact of Sunday shopping on employment and hours of work in the retail industry: Evidence from Canada," European Economic Review, Elsevier, vol. 49(8), pages 1953-1978, November.

    More about this item

    Keywords

    Sunday trading regulation; opening hours regulation; retail sector;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ehl:lserod:61156. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: LSERO Manager (email available below). General contact details of provider: https://edirc.repec.org/data/lsepsuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.