Hello. I'm Fabien Petit.

Research Fellow at the Science Policy Research Unit, University of Sussex. I am interested in Labor Economics, Macroeconomics and Behavioral Economics.

My research project focuses on labor markets, technologies, skills and inter-generational mechanisms. I am part of the PILLARS Project.

🚨📢 Latest news:

Projects CV

Research

"Research is an organized method for keeping you reasonably dissatisfied with what you have." - Charles F. Kettering.

đź“ť Working papers

Can workers still climb the social ladder as middling jobs become scarce?

Evidence from two British Cohorts

with Cecilia García-Peñalosa and Tanguy van Ypersele | Revise and Resubmit at Labour Economics | Working Paper

Abstract: The increase in employment polarization observed in several high-income economies has coincided with a reduction in inter-generational mobility. This paper argues that the disappearance of middling jobs can drive changes in mobility, notably by removing a stepping-stone towards high-paying occupations for those from less well-off family backgrounds. Using data for two British cohorts we examine how the occupational outcomes of children depend on both initial occupations and occupational upgrading during their careers. We find that transitions across occupations are key for mobility and that the effect of parental income on those transitions has become stronger over time. Moreover, the impact of parental income increased the most in the regions where the share of middling employment fell the most, suggesting that greater employment polarization may be one of the factors behind the observed decline in mobility.

Heterogeneous labor market adjustment to automation technologies

with Florencia Jaccoud and Tommaso Ciarli | Working Paper

Abstract: This paper examines the labor market adjustments to four automation technologies (i.e. robots, communication technology, information technology, and software/database) in 227 regions across 22 European countries from 1995 to 2017. By constructing a measure of technology penetration, we estimate changes in regional employment and wages affected by automation technologies along with the reallocation of workers between sectors. We find that labor market adjustments to automation technologies differ according to i) the technology involved, ii) the sector of penetration, iii) the sectoral composition of the region, and iv) the region's technological capabilities. These adjustments are driven largely by the reallocation of low-paid workers across sectors.

Investment cycles in automation technologies and labor markets: Evidence from European regions

with Tommaso Ciarli, Teresa Farinha, Florencia Jaccoud and Maria Savona | CESifo Working paper forthcoming

Abstract: This paper examines the long-run versus short-run implications for labor markets of exposure to four automation technologies---robots, communication, information and software and databases. Using a multiple break-point algorithm, we identify investment cycles as affecting employment, wages, and wage shares in 163 NUTS-2 regions across 12 European countries between 1995 and 2017. In the long run, we find that robots have increased employment but reduced wages and the wage share in the region. ICT have had some positive impact on employment and wages, but mildly significant. Software and database have had a negative impact on employment, but no effect on wages. When distinguishing for shorter investment cycles, we find that the long-run effect is concentrated in specific cycles, which often cancel out in the long run.

Spillover effects across values

Working Paper

Abstract: Values characterize preferences that themselves shape individuals’ decisions explaining future gaps in economic outcomes. I study the dynamics of values when values are inter-dependent and shocked by life events and I show that spillover effects across values do exist. Individuals choose to identify with a group with which they share values, but there are psychological costs to have values that are not consistent with those of the group. Whenever an event occurs in someone’s life—bringing new information—this may change some of her values. This shock can drive the individual to identify with a new group if the shocked values have taken her too far from her previous group. By identifying with the new group, she changes all her values—including not initially affected values—toward those of that new group. By changing values that are not affected by the shock, life events generate spillover effects across values.

Inter-generational conflict and the declining labor share

Working Paper

Abstract: The coincidence in timing between the start of the decline of the labor share and the entry of the baby-boomers cohort into adulthood—entering the labor market and reaching voting age—has received no attention. I argue that the observed shift away from labor toward capital is a response to changes in labor market institutions endogenously determined by the age structure of the population through voting. The size of the boomer cohort gives them large political weight and allows them to change public policy in their favor when they are young and then old. These institutional changes have consequences for the wage bargaining to which firms respond by substituting labor with capital to thwart workers’ appropriation of the rents. I develop a model which links public policy to wage bargaining and calibrate it for France and the US. Numerical simulations can replicate the decline of the labor share and labor market dynamics.

🔜 Work in progress

Generational inertia in skill adoption

Theoretical model derivation

Publications

"There is considerable evidence that people are more likely to arrive at conclusions that they want to arrive at, but their ability to do so is constrained by their ability to construct seemingly reasonable justifications for these conclusions. — Ziva Kunda

✏️ Other writing

Teaching

"A good teacher is like a candle – it consumes itself to light the way for others." - Mustafa Kemal Atatürk.

Advanced Microeconomics I

Teaching Assistant for Roberta Ziparo

BSc Mathematics and Economics (2019-2021)

Advanced Microeconomics II

Teaching Assistant for Roberta Ziparo

BSc Mathematics and Economics (2019-2022)

Macroeconomics I

Teaching Assistant for CĂ©line Poilly

BSc Economics and Law (2020-2022)
BSc Economics and Management (2019-2022)

International Monetary Mechanisms

Teaching Assistant for Gilbert Bougi

BSc Business and International Trade Management (Spring 2019)

Mathematics I

Teaching Assistant for Laurent Bruasse and Maxime Gilly

BSc Economics and Law (2019-2021)

Mathematics II

Teaching Assistant for Laurent Bruasse

BSc Economics and Management (Spring 2019)

Contact me

I would love to receive other emails than spam. For real.
Do not hesitate to send me an e-mail to fabien.petit@sussex.ac.uk


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