We show how size-contingent laws can be used to identify the equilibrium and welfare effects of labor regulation. Our … framework incorporates such regulations into the Lucas (1978) model and applies this to France where many labor laws start to …. With flexible wages, the deadweight loss of the regulation is below 1% of GDP, but when wages are downwardly rigid welfare …

We show how size-contingent laws can be used to identify the equilibrium and welfare effects of labor regulation. Our … framework incorporates such regulations into the Lucas (1978) model and applies this to France where many labor laws start to …. With flexible wages, the deadweight loss of the regulation is below 1% of GDP, but when wages are downwardly rigid welfare …

Does regulation affect the pace and nature of innovation and if so, by how much? We build a tractable and quantifiable ….4% lower due to the regulation, a 2.2% consumption equivalent welfare loss. Four-fifths of this loss is due to lower innovation … changes in the direction of R&D, and find that regulation's negative effects only matter for incremental innovation (as …

This study presents a comparative analysis of regulatory thresholds applicable to firms in France and in Germany. A … the number of employees. Several thresholds apply to firms in both countries. In France, the main regulations become … the second part of the report, evidence is found for distorting effects on the firm size distribution only in France …

thereby spur their employees to pursue value-enhancing innovative activities. Using patents and citations as proxies for … innovation, we identify the effect of dismissal laws by exploiting the time-series variation generated by staggered country …-level law changes. Using fixed effect panel regressions and difference-in-difference tests, we find that innovation is fostered by …

tests this hypothesis across countries by linking environmental stringency to innovation proxied by patents in the field of …A weak version of the Porter hypothesis claims that strict environmental policy provides positive innovation incentives … models do not reveal a positive significant effect on innovation as a result of increased stringency. In the theoretically …

across firms and hence reduce aggregate productivity. It then considers a case-study of labor laws in France where firms that … have 50 employees or more face substantially more regulation than firms that have less than 50. The size distribution of … developed with a payroll tax of 0.15% that only applies to firm above 50 employees. Removing the regulation improves labor …