G.L.Piggy [at] gmail.com
Error: Twitter did not respond. Please wait a few minutes and refresh this page.
At Reason, Peter Suderman links to research out of France showing the employment disincentives that arise from government regulation:
We can see this effect at work in France, which regulates companies with 50 or more workers far more heavily than those with 49 or less. A December 2012 paper by Boston University economist Francois Gourio and University of Wisconsin economist Nicolas A. Roys for the National Bureau of Economic Research notes that, as a result of the regulatory cliff, the size distribution of firms in France “is visibly distorted: there are many firms with exactly 49 employees.” And they’ve got the graphs to prove it.
These are the same exact findings reported by Casey Mulligan at the New York Times’ Economix blog:
As Mulligan notes in his post, France also has regulations which kick in when a firm reaches 10 employees – thus why there is such a huge spike and drop off in the first graph between 9 and 10 employees.