Princeton Job Market Candidates in Trade and Related Fields
This year we have an exceptional cohort of six Princeton job market candidates
in trade and related fields (in alphabetical order). Seize this
opportunity to hire oustanding researchers in these fields!
International Trade / Macroeconomics / Spatial Economics
- Adrien Bilal : The Geography of Unemployment
- Adrien's job market paper shows that the job-losing-rate is responsible for most of the
spatial differences in unemployment and develops a dynamic theory of spatial geography
that features equilibrium unemployment driven by differences in these rates. A key
implication of the model is that firms sort inefficiently in space and placed-based
policies can be welfare improving. Adrien has another paper that is a revise and
resubmit at Econometrica.
Structural Labor / Applied Microeconomics
- Anders Humlum : Robot Adoption and Labor Market Dynamics
- Anders's job market paper provides the most convincing evidence to date on the income
distributional consequences of robots. The paper combines a reduced-form event study
specification and a structural model that makes a methodological contribution in
incorporating both dynamic firm technology adoption decisions and dynamic worker
occupation choices. These specifications are estimated using rich matched
employee-employer data for Denmark. Although the income distributional effects
of robots can be alleviated using a robot tax, the paper shows that this policy
has a substantial negative effect on aggregate efficiency and real income.
International Trade / Spatial Economics
- Charly Porcher : Migration with Costly Information
- Charly's job market paper provides theory and evidence that migration is limited by
information frictions. The paper first develops a quantitative dynamic general equilibrium
model of migration with costly information acquisition and local information sharing modelled
using rational inattention. The paper next structurally estimates this model using data on
Brazilian commuting zones over time and finds substantial information frictions, which play
a quantitatively relevant role in shaping the effects of counterfactual changes in policy.
Macroeconomics / Spatial Economics / Urban Economics
- Hannah Rubinton : The Geography of Skill Biased Technical Change
- Hannah's job market paper shows that larger cities in the United States have
experienced larger increases in the wages and employments of skilled workers relative
to unskilled workers than smaller cities and have simultaneously experienced an
increase in relative levels of business dynamism. To account for these empirical
findings, her paper embeds a model of producer dynamics following Hopenhayn (1992)
in a quantitative spatial general equilibrium model. As the larger market size
in bigger cities leads to a large fraction of firms to adopt a skill-biased
new technology, this increases the relative wages and employment of skilled
workers, and bids up the price for land, which in turn increases the productivity
threshold below which firms exit, thereby increasing relative rates of firm entry
and exit in larger cities.
- Rowan Shi : Solving Combinatorial Discrete Choice Problems in Heterogeneous Agent Models: Theory and an Application to Tax Harmonization in the EU
- Rowan's job market paper develops a new algorithm for solving
high-dimensional combinatorial discrete choice problems in heterogeneous
agent models. A classic example is a multinational firm's choice of whether
to open a plant in each of N locations, a problem with 2^N possible combinations
of plant locations for each firm. Her algorithm solves problems of this form
in which each agent's payoff is either monotonically increasing or decreasing
in its type and either supermodular or submodular in the set of locations.
Her empirical application shows how this approach makes feasible an
analysis of corporate tax harmonization across the 27 member countries
of the European Union (2^27 = 134,217,728 combinations).
International Trade / Macroeconomics / Labor Economics
- Fabian Trottner : Who Gains from Scale? Trade and Wage Inequality Within and Between Firms
- Fabian's job market paper begins by showing that the employer-size wage premium is systematically
larger for more skilled workers. To account for these empirical findings, the paper develops a
theoretical model in which firms have a non-homothetic production technology and face
upward-sloping supply functions for labor. To distinguish non-homotheticities from
heterogeneous production technologies, he structurally estimates this model using
matched employee-employer data for Germany. Trade liberalization is shown to
substantially raise overall wage inequality, through both between-firm inequality
for workers of a given skill and within-firm inequality between workers of different skill.
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