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Abstract:

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Small isnít always beautiful: The cost of regulation on French firms

June 2013
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Tags: john van reenen; luis garicano; the euro; european economics; finance; business and regulation; west europe; firms; france; regulation.

France has a raft of labour-market regulations that kick in for firms with 50 workers or more. Luis Garicano and John Van Reenen use this threshold to identify the economic effects of size-contingent regulations. Such policies seem to subsidise small firms at the expense of larger firms. But since small firms are on average less productive than large firms, the […]