- "Age Discontinuity and Nonemployment Benefit Policy Evaluation through the Lens of Job Search Theory", with Bruno Decreuse (Aix-Marseille School of Econ.)
Online appendix on Github with the code files
A recent strand of papers use sharp regression discontunity designs (RDD) based on age discontinuity to study the impacts of minimum income and benefit extension policies. This design challenges job search theory, which predicts that such RDD estimates are typically biased. Owing to market frictions, people below the age threshold actually account for future eligibility to the policy. This affects their search outcomes in a continuous way. Comparing them to people above the threshold is misleading because both groups of workers are actually treated. We quantify the theoretical bias on the datasets that have been used in the literature. Our results suggest that the impacts of minimum income policies are (significantly) under-estimated, whereas the impacts of benefit extensions are (not significantly) over-estimated.
- "Career Paths with a Two-Body Problem: Occupational Specialization and Geographic Mobility", with Valeria Rueda (U. of Nottingham)
We develop a model of joint job search and occupational choice in which job opportunities can be incompatible inside the couple. Typically, incompatibilities may arise because jobs are not in the same location. We show that the existence of incompatible jobs pushes some couples to sacrifice the career of one partner. The model predicts occupational switches throughout the career and at the time of couple formation. Gendered equilibria, whereby all women (or men) choose the accommodating occupation, may arise. Any element of ex-ante unfavorable gender gaps—for instance, due to discrimination or norms—is amplified and can generate large systemic differences in gender composition between occupations.
- "A Dynamic Empirical Model of Frictional Spatial Job Search", with Christian Schluter (Aix-Marseille School of Econ.), upon request
This paper develops a general equilibrium life-cycle model of spatial job search across heterogeneous local labor markets in the presence of search frictions. US and European labor markets exhibit very low geographic mobility. This pattern has usually been framed as resulting solely from moving costs. However, to account for the observed geographic mobility, the implied moving costs should be extremely high. Stating the problem with a search-theoretic perspective, we establish a tractable model of location choice that accounts for the spatial dimension of search frictions. The model allows disentangling the different frictions that contribute to lowering geographic mobility, with a particular emphasis on the role of age. We estimate our model structurally using French administrative individual-level transition data.
- "Regional Unemployment Persistence with Agglomeration Effects", with Pierre Deschamps (Sciences Po), upon request
Patterns of unemployment vary considerably across regions. Using an original model of the regional labor market with search and mobility frictions, we study the role of agglomeration effects on the dynamics of local unemployment. With agglomeration productivity gains, negative regional employment shocks are amplified because profit opportunities deteriorate, inducing higher mobility out of the region. We then calibrate the model in order to fit empirical regularities in the persistence of local shocks.