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Talking Economics: The Hidden Economics of Who Works Where

20 August, 2025

In our latest Talking Economics episode, we spoke with Luca Mazzone, Assistant Professor at CERGE-EI and Economist at the IMF, about the hidden dynamics behind wage inequality, employment policy, and how households shape labor market outcomes. 

His research examines how people and firms connect—and why this matching process is crucial for productivity, inequality, and economic growth.

Luca examines how worker-firm sorting influences wages, inequality, and economic resilience, highlighting the role of search frictions that persist even in the digital era. His research challenges the idea that recessions “cleanse” the economy, showing instead that downturns can worsen job matches and productivity. He emphasizes the need for carefully designed unemployment and job retention policies, supported by robust data and structural models to guide decision-making. Looking ahead, Luca turns to the household as a crucial unit of analysis, where choices about work, childcare, and fertility ripple out to influence labor markets and long-term growth.

Tune in to our podcast on Spotify, Apple Podcasts, or YouTube to learn more.

Read the episode summary on the CERGE-EI Blog.