The aim of this project is to study the interactions between the product market and the labor market, and how changes impacting firms’ profits (changes in productivity, demand for one’s good, new entrant on the market,…) are passed on to workers (through wages or employment duration. This study has two parts : first the systematic study of firms’ policies in the face of changes in profits (hiring vs firing, increase vs decrease of investments or the wage bill, opening vs closing of establishments, …) and their consequences for the workers. Second, firms are de facto connected through workers’ transitions between them, some firms being more “central” than others, as if workers had to work at these firms at some point in time to unlock further work opportunities. We want to quantifying this mechanism, how it evolves when new firms enter a market or existing firms grow or shrink, and its importance for the workers.
