Guangbin Hong
@GuangbinHong
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PhD Candidate @UofT , studying macroeconomics, spatial economics and international trade. Website:
Toronto, Ontario
Joined April 2020
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Last Seen Profiles
Pinned Tweet
📢 I am excited to share my job market paper!
High-productivity firms and high-skilled workers co-locate in larger cities. How does this systematic sorting pattern affect spatial inequality and aggregate welfare? (1/7)
#EconTwitter
#EconJobMarket
#JMP
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I am excited to share that my job market paper, “Two-Sided Sorting of Workers and Firms: Implications for Spatial Inequality and Welfare”, was awarded Bank of Canada Graduate Student Paper Award!
#UofT
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I am honoured to receive one of the Best Econ JM Paper Awards from
@EEANews
and
@UniCredit_PR
.
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How about real-world policies? I show that they often generate unintended adverse outcomes. For example, low-skilled workers lose from policies attracting high-tech firms to a city. This provides valuable context to the social debate on relevant policies. (6/7)
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I build a GE model in which both workers and firms sort across ex-ante different cities. I allow for production complementarity between workers and firms. Equilibrium spatial allocation is a result of the interaction between city differences and agents' location choices. (2/7)
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So, how important is two-sided sorting for spatial inequality? I find that worker and firm sorting account for 67% and 26% of the urban earnings premium, respectively. Model counterfactuals suggest that production complementarity is key to driving two-sided sorting. (3/7)
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@TradeDiversion
Thank you!
Guangbin Hong (Toronto) - Two-Sided Sorting of Workers and Firms: Implications for Spatial Inequality and Welfare -
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These externalities create room for welfare-improving policies! The government can improve social welfare by incentivizing stronger co-location of high-skilled workers and high-productivity firms, with spatial income transfers towards lower-earning cities. (5/7)
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Finally, many thanks to my
@econuoft
committee for their continued support and guidance. I'm grateful for the feedback I've received so far - looking forward to discussing further. (7/7)
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Is the spatial allocation efficient? I show novel sorting externalities that arise from the interplay between two-sided sorting and local matching. When firms choose a city, they do not internalize labor stealing from other firms or matching benefits for local workers. (4/7)
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