This paper investigates the importance that market regulation and fi…nancial imperfections have on …firm growth. We analyse institutions af- fecting labor market as Employment Protection Laws (EP) and Product Market Regulation (PM). We show that together with the bene…ficial ef- fects of...

This paper provides new evidence on the institutional determinants of firm size. Using a comprehensive longitudinal database of firm characteristics across 29 industrial sectors in 15 OECD countries, the authors study how labor regulations and barriers to entrepreneurship affect industrial...