This research project examines the causes and consequences of differences in local labour market outcomes in France and Germany. We systematically and comprehensively examine the roles of each side of the local labour market: the behaviour of firms seeking to harness the gains in productivity stemming from the close proximity of firms in urban centres; the location decision of workers who trade-off wages, employment probabilities, and housing costs; and the interaction of these economic forces that lead to a spatial equilibrium. We then open the black box of the firm, and investigate how these forces lead to particular organisation structures, and interact with trade openness of firms. This contributes to a better understanding of spatial multipliers and will enable us to answer a key public policy question: in view of the sometimes substantial disparities between localities in terms of unemployment rates and wage levels, what is an optimal policy response?

Selected Publications

Articles in Refereed Journals

von Auer, Ludwig, Andranik Stepanyan and Mark Trede (2019), Clas-sifying Industries into Types of Relative Concentration, Journal of the Royal Statistical Society Series A, 182, 1017-1037. Download

Schluter, Christian and Mark Trede (2019), Size Distributions Recon-sidered, Econometric Reviews 38, 695-710. Download

Ben Yahmed, Sarra and Pamela Bombarda (2019), Gender, Informal Employment and Trade Liberalization in Mexico, The World Bank Economic Review 34(2), 259–283. Download

Discussion and Working Papers

Trede, Mark and Michael Zimmermann (2020), Regional Worker Migration – Stylized Facts for Germany, CQE Working Paper Download

Selected Events