The Impact of Sunday Shopping Deregulation on Employment and Hours of Work in the Retail Industry: Evidence from Canada

Mikal Skuterud  McMaster University

Using aggregate data on employment and hours of work from four Canadian provinces at two levels of the retail trade industry, I estimate a simple dynamic labour demand model in order to examine retail firm responses to Sunday shopping deregulation.  The estimates suggest that deregulation resulted in long run increases in the employment level and average weekly hours of work, In addition, despite evidence of an immediate shortfall in total labour input employed below its long run optimal level, the results suggest that were unable to compensate by temporarily increasing the hours of their existing employees.
 

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