This study represents a first attempt to empirically analyze the role of firm heterogeneity in regional business cycle behaviour. Working with monthly Italy's firms data and estimating a random effects ordered probit model, we first document sizable asymmetries in Northern and Southern firms...

The Italian law on unfair firing (art. 18 of Statuto dei Lavoratori) discriminates according to whether the firm is below or above the threshold of 15 employees. In this paper we investigate the effects of the law on size growth of firms. The database consists of company level information...