**Table 15:** Job Flows by Firm Size, Entering, Exiting and Continuing Firms - the Role of Labor and Product Market Regulations (Difference-in-Difference Analysis))

|Entry & Exit|Continuers|Entry & Exit<br>Continuers|
|---|---|---|
|(1)|(2)|(3)<br>(4)|
|Constant<br>-0.0074<br>[0.0054]|0.0241<sup>_∗∗_</sup><br>[0.0094]|0.0232<sup>_∗∗∗_</sup><br>0.0610<sup>_∗∗∗_</sup><br>[0.0058]<br>[0.0116]|
|USA SUM||1.0809<sup>_∗∗∗_</sup><br>0.4742<sup>_∗∗∗_</sup>|
|||[0.0454]<br>[0.0615]|
|USA SUM <sup>_∗_</sup>EU<br>0.5730<sup>_∗∗∗_</sup><br>[0.0307]|0.5118<sup>_∗∗∗_</sup><br>[0.0372]||
|USA SUM <sup>_∗_</sup>Transition<br>0.6835<sup>_∗∗∗_</sup><br>[0.0345]|0.6133<sup>_∗∗∗_</sup><br>[0.0418]||
|USA SUM <sup>_∗_</sup>LAC<br>0.9982<sup>_∗∗∗_</sup><br>[0.0341]|0.4942<sup>_∗∗∗_</sup><br>[0.0427]||
|USA SUM <sup>_∗_</sup>||-0.1542<sup>_∗∗∗_</sup><br>-0.0018|
|EPL (Adj) <sup>_∗_</sup>_<_20 workers||[0.0137]<br>[0.0179]|
|USA SUM <sup>_∗_</sup>||-0.1483<sup>_∗∗∗_</sup><br>-0.0418<sup>_∗_</sup>|
|EPL (Adj) <sup>_∗_</sup>20-49 Workers||[0.0212]<br>[0.0219]|
|USA SUM <sup>_∗_</sup>||-0.1636<sup>_∗∗∗_</sup><br>-0.0557<sup>_∗∗_</sup>|
|EPL (Adj) <sup>_∗_</sup>50-99 Workers||[0.0277]<br>[0.0226]|
|USA SUM <sup>_∗_</sup>||-0.1148<br>-0.0722<sup>_∗∗_</sup>|
|EPL (Adj) <sup>_∗_</sup>100+ Workers||[0.0738]<br>[0.0304]|
|USA SUM <sup>_∗_</sup>||0.1010<sup>_∗∗∗_</sup><br>0.0007|
|Bus. Reg. (Adj) <sup>_∗_</sup>_<_20 Workers||[0.0220]<br>[0.0288]|
|USA SUM <sup>_∗_</sup>||0.0034<br>0.0404|
|Bus. Reg. (Adj) <sup>_∗_</sup>20-49 Workers||[0.0347]<br>[0.0357]|
|USA SUM <sup>_∗_</sup>||-0.0208<br>0.0546|
|Bus. Reg. (Adj) <sup>_∗_</sup>50-99 Workers||[0.0450]<br>[0.0368]|
|USA SUM <sup>_∗_</sup>||-0.2452<sup>_∗∗_</sup><br>0.0599|
|Bus. Reg. (Adj) <sup>_∗_</sup>100+Workers||[0.1205]<br>[0.0504]|
|Observations<br>946|934|946<br>934|
|Adjusted R-squared<br>0.69|0.55|0.75<br>0.58|
|Standard errors in brackets.<br>_∗_signifcant at 10%,|_∗∗_signifcant|at 5%, _∗∗∗_signifcant at 1%. All re-|
|gressions include country dummies. USA SUM (E<br>entering and exiting frms in the United States.|ntry & Exit):<br>EU denotes t|industry/size job reallocation due to<br>he OECD European countries. Tran-|
|sition denotes the countries in Central and East|ern Europe.|LAC denotes the countries in Latin|
|America. EPL is the index of stringency of hiring <br>of hiring and fring adjusted to take into account <br>main text). Bus. Reg. is the indicator of the stri|and fring re<br>diferent degr<br>ngency of bus|gulations. EPL (Adj) is the indicator<br>ees of enforcement of regulations (see<br>iness regulations. Bus. Reg. (Adj) is|
|the same indicator adjusted to take into account|diferent degr|ees of enforcement of regulations.|

Source: Own calculations based on harmonized firm-level database.

cation) on job flows by entering and exiting firms is not significant for small and medium firms, and is negative and significant for large firms, while it is surprisingly positive for micro firms. Given all the controls and interactions in this setting, care needs to be applied in intepreting the coefficients. However, the results suggest that labor market regulations have a relatively larger adverse impact on entry and exit for micro firms while product mar42