Worker Mobility Across Space and Occupations: Evidence from France

Alex Newnham (University of Paris-Saclay), joint with Mushegh Tovmasyan (University Paris-Saclay)

We propose a dynamic discrete choice model that simultaneously examines occupational choices and location choices. Given the high estimated costs reported in the literature associated with changes across job markets and across occupations, we aim to better understand the relationship between these choices. The model contributes to shedding light on the factors behind the low mobility rate of workers. By utilizing detailed French administrative data and focusing our study on workers affected by mass layoffs, our counterfactual analyses demonstrate that estimated geographical mobility costs are considerably lower when occupational choices are taken into account.