Jan Eeckhout and Nezih Guner analyze how federal income taxes affect the size of cities by characterizing how optimal taxes reallocate workers across cities in the United States, and the implications for the overall economy.
Married couples are healthier than singles. New work by Nezih Guner, Yuliya Kulikova and Joan Llull seeks to determine the direction of causality by exploiting panel data. (This post first appeared on VoxEU.org)
Barcelona GSE research on VoxEU.org by Kerem Cosar, Nezih Guner, and James R. Tybout
Trade liberalisations are often accompanied by labour market reforms, making it difficult to isolate their effects. This column discusses the effects of trade liberalisation, globalisation, and labour-market reforms on the Colombian labour market. Reduced trade frictions increased cross-firm wage inequality and shifted the firm-size distribution rightward, with offsetting effects on overall wage inequality. Average income increased, but the gains were concentrated among employees of large, productive firms with access to export markets. Greater trade openness also increased job turnover.