Akcigit, Ufuk; Alp, Harun; Diegmann, André; … - National Bureau of Economic Research - 2023
This paper investigates a unique policy designed to maintain employment during the privatization of East German firms … after the fall of the Iron Curtain. The policy required new owners of the firms to commit to employment targets, with … penalties for non-compliance. Using a dynamic model, we highlight three channels through which employment targets impact firms …