- "Optimal Taxation to Correct Job Mismatching", Revise & Resubmit for Review of Economic Dynamics
This paper presents a new efficiency argument for an accommodating taxation policy on high incomes. Job seekers, applying to different segments of a frictional labor market, do not internalize the consequences of mismatch on the entry decision of firms. Workers are not selective enough, resulting in a lower average job productivity and suboptimal job creation. When workers have symmetric comparative advantages, the first-best output-maximizing allocation can be decentralized through a simple anti-redistributive taxation. An income tax guarantees an optimal sharing of the match surplus and a production tax redresses the slope of the wage curve.
- "Age Discontinuity and Nonemployment Benefit Policy Evaluation through the Lens of Job Search Theory", with Bruno Decreuse (Aix-Marseille School of Econ.)
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.
- "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.
- Gender Employment Gap and Geographical Mobility: Evidence from Academia, with Valeria Rueda (Pembroke College, Oxford)
received an Early Career Research Grant of $5,000 from the W.E. Upjohn Institute
- Social Welfare for the Gig Economy