Akcigit, Ufuk; Alp, Harun; Diegmann, André; … - Leibniz-Institut für Wirtschaftsforschung Halle - 2024 - This version: 19.08.2024
We examine effects of government-imposed employment targets on firm behavior. Theoretically, such policies create “polarization,“ causing low-productivity firms to exit the market while others temporarily distort their employment upward. Dynamically, firms are incentivized to improve...