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Spatial wage inequality in France

Princeton University - PRINCETON, NEW JERSEY - 2022

Why are wage inequalities larger in some cities than in others? Does our understanding of wage inequality changes once we acknowledge that cities are the primary place of interaction between firms and workers? Lastly, to what extent local wage inequality aggregate to the national level? This project, both theoretical and empirical, addresses these questions in three parts.
In the first part, I document the existence of spatial differences in wage inequality in France, and how these differences correlate – or not – with various local characteristics. In the second part, I focus on the role of search frictions in local labor markets, and question whether these frictions can have spatially differentiated impact on wage inequality throughout France. In the last and third part, I investigate the role of local public policies (property tax, public transportation network, etc.) on wage and job opportunity inequality.