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Paper No' CEPDP0664: | Full paper
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Keywords: Shop opening hours; labor demand, organization of retail markets
JEL Classification: J23; L11; L81
Is hard copy/paper copy available? YES - Paper Copy Still In Print.
This Paper is published under the following series: CEP Discussion Papers
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Abstract:There is a growing consensus among economists that extending shop opening hours creates jobs. While this is probably true in deregulating industries, this paper argues there are some deficiencies in the existing hypotheses about how exactly deregulation affects employment. First, this paper exploits recent changes in Sunday Closing Laws in the US to find that total employment, total revenue and the number of shops increase in deregulating industries and possibly decrease in non-deregulating industries. Second, a model assuming consumers like shopping on Sunday, monopolistic competition and low barriers to entry is presented to show how consumer behavior and retail competition can explain the observed impact of deregulation on retail labor and product markets and therefore ultimately employment.
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