behavior and aggregate fluctuations. We document that firm-level sales and productivity are hit by heavy-tailed shocks and …

"polarization," causing low-productivity firms to exit the market while others temporarily distort their employment upward …. Dynamically, firms are incentivized to improve productivity to meet targets. Using novel data from East German firms post … exit probability, and 10% higher annual productivity growth over the target period. Structural estimates reveal substantial …

This research study will examine how labor manages productivity advances and crisis response in both the United States …