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The prize-winning article was published in the January 2023 issue of The Economic Journal. You can read the article Free to View here.
The Prize was awarded for the following reasons:
This innovative article in the timely literature of labour supply polarisation evidences the emergence of spatial polarisation.
The authors highlight a novel channel for polarisation – the role of increased consumption demands by highly skilled workers for lower skilled services.
The applied work is framed within a rigorous theoretical model, showcasing the importance of the channel and of the policy consequences relevant to redistribution and inequalities.