The distributions are shown in Figure 1. It's obvious that the stationary distributions of firms and employment are shifted to the right side of the distribution of productivity levels. The reason that the distribution of firms deviates to the right of the productivity is that firms can always choose not to be in the industry if they find it not profitable given the fixed cost of staying and entering in the industry. That is especially true when the productivity is low and below the cutoff value. Share of employment is moving further right because labor demand is a strictly increasing and convex function of productivity meaning that higher productivity firms are more likely to employ more labor. This shifts the distribution of labor demand right to the distribution firms.
4. A Higher Demand
If the fixed demand is changed from 100 to 120, the results are shown below: