Gourio, François; Roys, Nicolas - In: Quantitative Economics 5 (2014) 07, pp. 377-416
In France, firms that have 50 employees or more face substantially more regulation than firms that have less than 50. As a result, the size distribution of firms is visibly distorted: there are many firms with exactly 49 employees. We model the regulation as the combination of a sunk cost that...
