CV - Job Market Paper  

Daniele, Federica

Job market candidate

Contact information

Tel. +34 93 542 1998

Personal Website:

Available for Interviews at :

Simposio de la Asociación Española de Economía (SAEe), December 14-16, Barcelona, Spain

Allied Social Science Associations (ASSA), January 5-7, Philadelphia, US


Research interests

Primary: Economic Geography, Labor Economics, Macroeconomics

Secondary: Industrial Organization, Urban Economics


Placement officer

Filippo Ippolito


Julian Di Giovanni

Jan Eeckhout (Advisor)

Giacomo Ponzetto (Advisor))

Edouard Schaal


"Idiosyncratic Uncertainty and Variety in Cities"(Job Market Paper) (with Heiko Stüber)
This paper analyzes how idiosyncratic uncertainty among firms affects the variety of goods across cities and the spatial distribution of economic activity. I combine existing methodologies to construct a measure of idiosyncratic uncertainty for 5-digit industries using establishment-level data. I show that an increase in idiosyncratic uncertainty positively correlates with an increase in variety as measured by the number of establishments active in a given industry and that the effect is six times larger in big cities. Two channels affect the response of variety to changes in idiosyncratic uncertainty: more uncertainty raises the value of holding a business by the convexity of firm profits in the productivity shock, but it also decreases it by inducing tougher market conditions. The positive association between idiosyncratic uncertainty and variety is indicative that the first channel dominates. I develop a general equilibrium framework to study quantitatively how micro uncertainty affects the spatial distribution of economic activity. I use idiosyncratic uncertainty backed-out from the data to structurally estimate the model. The gains from variety and competition due to idiosyncratic uncertainty are small if variation in micro uncertainty is mean-preserving, and large otherwise. A fall in idiosyncratic uncertainty by 1 basis point reduces geographical concentration by .37% and aggregate productivity by 1.5%. One-tenth of the productivity decline is due to lost agglomeration externalities on the productivity of firms.

"Large Firms and the Volatility and Persistence of Local Business Cycles (with Heiko Stüber)
This paper analyzes how large firm dynamics and stronger agglomeration externalities on the productivity of the largest firms jointly determine local business cycle fluctuations. First, it uncovers novel evidence on local business cycle properties across a panel of German Metropolitan Areas: large cities face less aggregate volatility, but also longer recessions. Second, it shows that a theory of large firm dynamics is needed to account for the observed rate of diversification based on city size. Additionally, it highlights how the combination of large firm dynamics and stronger agglomeration externalities on the productivity of the largest firms can account for the fact that aggregate employment takes longer to recover and, thus, features more persistence in big cities. Finally, by matching the predictions of the theory to business cycle properties across cities, it provides a novel source of identification for the stronger productivity advantage granted by big cities to already large firms.

"Specialization and Cities"(with Jan Eeckhout and Theodore Papageorgiou)
Specialization has been long considered a driver of worker productivity. Using occupation-level data we develop a measure of individual specialization that takes into account the tasks performed by the worker and their frequency. We find high-skilled workers to be on average more specialized, workers located in large cities to be more specialized, and among them especially the high-skilled ones. We develop a model that microfounds the choice of specialization and we embed it into a standard spatial equilibrium framework setup. We use the calibrated model to quantify the role of endogenous specialization at shaping the urban wage premium by skill groups.