Job Market Paper

Spatial Wage Differentials, Geographic Frictions and the Organization of Labor within Firms. (with Ditte Håkonsson Lyngemark). 2019 [PDF]

This paper studies the spatial structure of firms, both theoretically and empirically. Two new facts in Danish register data motivate the analysis. First, firms have become more fragmented over time. Second, headquarters (HQ) establishments have become more manager intensive, despite a significant increase in managerial wages at HQ locations. We study the roles of exogenous changes in wages across locations, communication costs and agglomeration economies in explaining these two trends. Immigration shocks are the source of identifying variation for changes in relative labor supply. Estimates indicate that increases in the wage of managers at the HQ relative to non-HQ, explain 50% of the increase in HQ managerial intensity. This can be explained by associated increasing demand for headquarter services as establishments become larger. Simulations suggest that wider wage gaps across locations can also lead to more establishments per firm, and this effect strengthens as communication costs fall.

Working Paper

We study how the location and the occupational composition of establishments within firms have changed during the last 36 years. Using Danish administrative employer-employee data, we document four interesting results regarding the internal spatial organization of firms. We show that the average number of establishments per firm increased by 36% during this period. Moreover, the average distance of the establishments and workers to their headquarters has increased by more than 200%. These changes are mainly driven by a decentralization of production and business service workers, and a higher use of the latter. Finally, we show that the ratio of managers to production and clerical workers within firms has increased, in particular in establishments located in the largest urban municipalities. After these results, we briefly discuss some of the mechanisms that could be behind these changes.

Work in Progress

  • The Impact of Land Use Regulations of the Welfare of High and Low Skilled Workers, 2019. [Preliminary Draft]

  • The Unintended Consequences on Crime of the Latin American Criminal Procedure Revolution: Evidence From the Colombian Case. (with Angela Zorro-Medina and Daniel Mejia). 2018. [Slides available on request]

Pre-doctoral Research

Peer-reviewed Publications

Working Papers

Book chapters

  • Un Enfoque Económico de la Detención Preventiva. Crecimiento de la Población Reclusa y Hacinamiento Carcelario en el Tránsito del Sistema Penal Acusatorio Colombiano (2003-2008). (with Hernandez, N., & Zorro-Medina, A.) In E. Lozano -Rodríguez (Ed.), Teoría y Puesta en Práctica del Análisis Económico del Derecho Colombiano (pp. 251-282) Bogotá: Ediciones Uniandes, 2016.