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

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  • Senftleben-König, Charlotte

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.

Suggested Citation

  • 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.
    • Handle: RePEc:zbw:vfsc14:100539
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. 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.

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    More about this item

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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