The model of compensating differentials in regional labor markets was developed by Roback(1982). The model interprets regional differences in constant quality wages and rents ascompensating firms and residents for inter-regional differences in amenities. The modelassumes that the costs of...

In this paper we show that the recent model by Duranton (AER, 2007) performs remarkablywell in replicating the city size distribution of West Germany, much better than the simplerank-size rule known as Zipf´s law. The main mechanism of this theoretical framework is thechurning of industries...

I study the trade-induced restructuring process using a novel measure of new work that captures the firm's demand for jobs employing new knowledge, skills, and technologies. To construct measures of new work, I identify newly emerged job titles using word embedding models. Using both regional...

This paper shows that 19th-century industrialization is an important determinant of the significant changes in Germany's economic geography observed in recent decades. Using novel data on economic activity in 163 labor market regions in West Germany, we establish that nearly half of them...

When regions in close proximity have different tax rates, residents may engage in cross-border shopping and take advantage of tax differentials. The extent of this activity can be captured by the tax elasticity of border sales (TEBS). We collect 749 estimates of TEBS reported in 60 studies, and...

Finding suitable employment in a city is more challenging for married than unmarried migrants. This paper provides empirical evidence that the denser and more diversified labor markets in large cities help alleviate the colocation problem of married couples. Using data from China, we show that...

This paper presents an empirical exploration of the geography of adolescents' occupational choices, using data covering a single cross-section of the population of all individual-level apprenticeship contracts in the canton of Bern in Switzerland. The unique feature of the data is that they...

We estimate the causal impact of a 2018 zoning reform that banned new short-term rental registries in some parts of Lisbon. The short-term rental licence expires when the house is sold, hence the ban removes the option value of short-term renting a property. We rely on two administrative data...

This paper extends the urban growth model of Duranton and Puga (2022) to explore the impact of cities on local firms and households and the aggregate economy of Germany. We adopt alternative micro-foundations for agglomeration economies and a non-linear specification of human capital...

Empirical studies of the economic effects of climate change (CC) largely rely on climate anomalies for causal identification purposes. Slow and permanent changes in climate-driven geographical conditions, i.e. CC as defined by the IPCC (2013), have been studied relatively less, especially in...