Firm Sorting and the Urban-Rural Divide

Faculty Sponsor(s): 
Ilse Lindenlaub and Michael Peters

Project Description(s):

Professors Lindenlaub and Peters are recruiting one Fellow to work on the following project:

In this project, we aim to understand the reasons and formulate potential remedies for the ongoing urban-rural divide. We combine tools from the literatures on firm dynamics and worker dynamics to better understand how firms sort across space, and the implications for local labor markets and productivity growth. We aim to apply this framework to Germany to study the location choice of firms after the fall of the German Wall. We are interested in whether our new mechanism can explain who settles where, thereby accounting for regional disparities and divergence in labor market outcomes and growth in the reunited Germany.

To carry out this project we will use matched employer-employee (administrative) data from Germany. The pre-doc will work on this project full time. His/her main tasks will be empirical, involving work on the administrative dataset (which can be accessed remotely), as well as computational.

Requisite Skills and Qualifications:

We are looking for a highly motivated student, who already had exposure to econometric methods at the level of a first-year graduate class, can work independently and is eager to learn. Fluency in R and STATA is required; knowledge of Matlab is a plus. Speaking/reading German would also be desirable (due to the use of the German data), but is not necessary for a successful application. 

Special Application Instructions:

None

Sponsor Name: 
Lindenlaub