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By employing exhaustive lists of large firms in European countries, we show that the upper-tail of the distribution of firm size can be fitted with a power-law (Pareto-Zipf law), and that in this region the growth rate of each firm is…

Statistical Mechanics · Physics 2009-11-10 Yoshi Fujiwara , Corrado Di Guilmi , Hideaki Aoyama , Mauro Gallegati , Wataru Souma

In this paper, we evaluate the impact of a reform introduced in Italy in 2018 (Decreto Dignit\`a), which increased the rigidity of employment protection legislation (EPL) of temporary contracts, rolling back previous policies, to reduce job…

General Economics · Economics 2024-02-01 Davide Fiaschi , Cristina Tealdi

Both theoretical and applied economics have a great deal to say about many aspects of the firm, but the literature on the extinctions, or demises, of firms is very sparse. We use a publicly available data base covering some 6 million firms…

Statistical Mechanics · Physics 2009-11-07 William Cook , Paul Ormerod

The yearly aggregated tax income data of all, more than 8000, Italian municipalities are analyzed for a period of five years, from 2007 to 2011, to search for conformity or not with Benford's law, a counter-intuitive phenomenon observed in…

Physics and Society · Physics 2014-11-10 Tariq Ahmad Mir , Marcel Ausloos , Roy Cerqueti

We address the issue of the distribution of firm size. To this end we propose a model of firms in a closed, conserved economy populated with zero-intelligence agents who continuously move from one firm to another. We then analyze the size…

General Finance · Quantitative Finance 2011-12-12 Anindya S. Chakrabarti

This paper explores a real-world fundamental theme under a data science perspective. It specifically discusses whether fraud or manipulation can be observed in and from municipality income tax size distributions, through their aggregation…

Statistical Finance · Quantitative Finance 2018-05-22 Marcel Ausloos , Roy Cerqueti , Tariq A. Mir

We study the effect of Chile's Employment Protection Law (Ley de Protecci\'on del Empleo, EPL), a law which allowed temporal suspensions of job contracts in exceptional circumstances during the COVID-19 pandemic, on the fulfillment of…

This paper shows how data science can contribute to improving empirical research in economics by leveraging on large datasets and extracting information otherwise unsuitable for a traditional econometric approach. As a test-bed for our…

General Economics · Economics 2019-11-05 Marco Guerzoni , Consuelo R. Nava , Massimiliano Nuccio

We investigate the shape of the Italian personal income distribution using microdata from the Survey on Household Income and Wealth, made publicly available by the Bank of Italy for the years 1977--2002. We find that the upper tail of the…

Other Condensed Matter · Physics 2009-01-31 F. Clementi , M. Gallegati

Zipf's law states that the probability of a variable being larger than $s$ is roughly inversely proportional to $s$. In this paper, we evaluate Zipf's law for the distribution of firm size by the number of employees in Brazil. We use…

Applications · Statistics 2024-09-18 Thiago Trafane Oliveira Santos , Daniel Oliveira Cajueiro

Growth of business firms or companies has been a subject of intensive research over a century. However, there still remains controversy about the basic mechanisms of their growth. Inspired by previous work on scaling laws in other systems,…

Physics and Society · Physics 2018-03-14 Yuh Kobayashi , Hideki Takayasu , Shlomo Havlin , Misako Takayasu

Companies that try to address inequality in employment face a hiring paradox. Failing to address workforce imbalance can result in legal sanctions and scrutiny, but proactive measures to address these issues might result in the same legal…

Computers and Society · Computer Science 2023-08-24 Jad Salem , Deven R. Desai , Swati Gupta

We study size and growth distributions of products and business firms in the context of a given industry. Firm size growth is analyzed in terms of two basic mechanisms, i.e. the increase of the number of new elementary business units and…

Condensed Matter · Physics 2009-11-10 G. De Fabritiis , F. Pammolli , M. Riccaboni

The distribution of firms' growth and firms' sizes is a topic under intense scrutiny. In this paper we show that a thermodynamic model based on the Maximum Entropy Principle, with dynamical prior information, can be constructed that…

Adaptation and Self-Organizing Systems · Physics 2015-04-30 Eduardo Zambrano , Alberto Hernando , Aurelio Fernandez-Bariviera , Ricardo Hernando , Angelo Plastino

This paper discusses the size distribution, - in economic terms - of the Italian municipalities over the period 2007-2011. Yearly data are rather well fitted by a modified Lavalette law, while Zipf-Mandelbrot-Pareto law seems to fail in…

Physics and Society · Physics 2015-06-23 Roy Cerqueti , Marcel Ausloos

A rich theoretical and empirical literature investigated the link between export diversification and firm performance. Prior theoretical works hinted at the key role of capability accumulation in shaping production activities and…

General Economics · Economics 2025-07-30 Valerio De Stefano , Maddalena Mula , Manuel Sebastian Mariani , Andrea Zaccaria

Youth unemployment rates are still in alerting levels for many countries, among which Italy. Direct consequences include poverty, social exclusion, and criminal behaviours, while negative impact on the future employability and wage cannot…

Computers and Society · Computer Science 2020-10-15 Alessandra Urbinati , Kyriaki Kalimeri , Andrea Bonanomi , Alessandro Rosina , Ciro Cattuto , Daniela Paolotti

Zipf's law states that the number of firms with size greater than S is inversely proportional to S. Most explanations start with Gibrat's rule of proportional growth but require additional constraints. We show that Gibrat's rule, at all…

Physics and Society · Physics 2014-08-26 Y. Malevergne , A. Saichev , D. Sornette

This paper uses firm-level data recorded in the AMADEUS database to investigate the distribution of labour productivity in different European countries. We find that the upper tail of the empirical productivity distributions follows a…

Physics and Society · Physics 2009-01-31 C. Di Guilmi , F. Clementi , T. Di Matteo , M. Gallegati

We characterize the statistical law according to which Italian primary school-size distributes. We find that the school-size can be approximated by a log-normal distribution, with a fat lower tail that collects a large number of very small…

Physics and Society · Physics 2014-07-18 Alessandro Belmonte , Riccardo Di Clemente , Sergey V. Buldyrev
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