This paper estimates the effects of the deregulation of shop opening hours on the market structure of the retail sector and on the size and composition of the labour force employed there. The analysis exploits the progressive removal of restrictions on opening hours which, starting from the 1990s, first only affected a number of Italian municipalities and, since 2011, the whole of Italy.
In a context of a general contraction of the retail sector, the reduction in the number of stores and workers was less in the municipalities affected by the deregulation measures. Larger commercial outlets benefited most from the measures; employment experienced a recomposition towards regular employees rather than self-employed workers. Indirect positive effects were recorded in some services complementary to retail trade (e.g. restaurants).
Published in 2023 in: The Journal of Law and Economics, v. 66, 1, pp. 21-52.
