We study the role of employment protection legislation (EPL) in determining firm size distribution. In many countries the provisions of EPL are more stringent for firms above certain size thresholds. We construct a simple model that shows that the smooth relation between size and growth...

We study the role of employment protection legislation (EPL) in explaining the relative small average size of Italian firms. We construct a simple model that shows that the smooth relation between size and growth probability is disturbed in proximity of the thresholds at which EPL applies...

This is Bruegel’s third report on the internationalisation of European firms, and the first one that relies on new, internationally consistent data resulting from the seven-country survey undertaken within the framework of the EFIGE (European Firms in a Global Economy) project. In the first,...