Research

Job Market Paper

Working Papers

Job Market Paper

Segmented Labor Markets and Structural Transformation

Working paper, October 2026. Presented at the North American Meeting of the Urban Economics Association (Chicago, 2026) and the Dutch Urban Economics and Trade Workshop (2025, 2026).

Most urban growth this century will occur in developing economies. Whether this urbanization translates into sustained economic development depends on how quickly workers gain access to productive formal employment. I develop a dynamic spatial general equilibrium model with three types of labor markets: rural, urban informal, and urban formal. Migrants enter an informal queue, and formalization depends on informal labor congestion and the economy's capacity to move informal workers into formal employment. I quantify the model for Ethiopia using novel geospatial and microdata. Formalization speed emerges as a key determinant of long-run structural transformation, growth, and welfare. At current capacity, workers wait about 26 years for a formal job and informality persists. Reducing formalization frictions to match rates observed in successfully transforming economies cuts the wait to about 17 years. This raises the urban formal employment share by 26 percentage points and real GDP in 2065 by 13.1 percent. Formalization speed shapes the effectiveness of economic policies and national resilience to climate shocks and conflict. Cities become engines of structural transformation not when workers arrive, but when labor markets absorb them into productive employment.

Working Papers

(Mis)measuring Local Weather Shocks: Evidence from Drought and Migration in Ethiopia

with Michiel Gerritse and Frank van Oort · Under review

Presented at the 6th GCD Workshop on Regional Development and Innovation (A Coruña, 2024), the Regional Science Workshop on Remote-Sensed Identification and Networks (Oviedo, 2024), and the PSE Summer School on Migration (2023).

Extreme weather shocks strike locally, yet their effects are typically estimated from exposure aggregated across districts, regions or countries. We show that this aggregation systematically biases impact estimates and propose a simple correction. Using high-resolution rainfall and satellite-derived population data for more than 13,000 Ethiopian settlements (2000–2016), we find that drought reduces population in vulnerable settlements by about 2.5 percent, concentrated among working-age adults and coinciding with falling food production, income and health. Measured at progressively coarser scales, the impact disappears, even at resolutions common in the literature. We decompose the bias into three sources (partial exposure misclassified, local vulnerability averaged away, area weights misrepresenting where people live) and derive a fix: measure each shock at fine scale, weight by local vulnerability, then aggregate. The correction recovers estimates in areas roughly four times larger than those at which the standard binary indicator fails; simulations confirm its performance. Building exposure locally before aggregating is a low-cost change that can substantially improve empirical practice.

Memory, Expectations, and Climate Adaptation

with Frank van Oort · Pre-registered field experiment (AEA RCT Registry) · Working paper, September 2026

Smallholder farmers face large and growing weather risk, yet take-up of insurance and other protection remains low. The value farmers place on protection depends on the weather they expect. Where records and forecasts are limited, those expectations are built from memories of past weather, and distorted recall can leave demand for protection poorly aligned with the risks farmers actually face. We measure how much experienced weather survives into perceived risk. In a survey experiment with 686 farmers in eastern Uganda, we elicit remembered and expected weather through visual token allocations and map geospatial rainfall and vegetation records onto the same scale. We find that memory is strongly compressed, with about 90 percent of seasonal weather variation lost in the baseline estimate. Yet remembered weather strongly predicts expectations, so this compression carries into beliefs about future risk. By contrast, salient extremes remain vivid. Farmers who recall an extreme are 19 percentage points more likely to expect another and also plan substantially more adaptation. In a randomized experiment, information on past local weather moves expectations toward the record and raises confidence. Accessible historical information can therefore help farmers assess climate risk and inform adaptation decisions in the face of climate extremes.