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  • Bonn: Institute for the Study of Labor (IZA)  (773)
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  • 1
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2015-05-22
    Description: We collect data on operations, targets and human resources management practices in over 1,800 schools educating 15-year-olds in eight countries. Overall, we show that higher management quality is strongly associated with better educational outcomes. The UK, Sweden, Canada and the US obtain the highest management scores closely followed by Germany, with a gap to Italy, Brazil and then finally India. We also show that autonomous government schools (i.e. government funded but with substantial independence like UK academies and US charters) have significantly higher management scores than regular government schools and private schools. Almost half of the difference between the management scores of autonomous government schools and regular government schools is accounted for by differences in leadership of the principal and better governance.
    Keywords: L2 ; M2 ; I2 ; ddc:330 ; management ; pupil achievement ; autonomy ; principals ; Schule ; Nonprofit- Management ; Management ; Dienstleistungsqualität ; Wirkungsanalyse ; Bildungsniveau ; Schätzung ; Vergleich ; Großbritannien ; Schweden ; Kanada ; USA ; Deutschland ; Italien ; Brasilien ; Indien
    Language: English
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  • 2
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: We study the role of establishment-specific wage premiums in generating recent increases in West German wage inequality. Models with additive fixed effects for workers and establishments are fit in four sub-intervals spanning the period from 1985 to 2009. We show that these models provide a good approximation to the wage structure and can explain nearly all of the dramatic rise in West German wage inequality. Our estimates suggest that the increasing dispersion of West German wages has arisen from a combination of rising heterogeneity between workers, rising dispersion in the wage premiums at different establishments, and increasing assortativeness in the assignment of workers to plants. In contrast, the idiosyncratic job-match component of wage variation is small and stable over time. Decomposing changes in mean wages between different education groups, occupations, and industries, we find that increasing plant-level heterogeneity and rising assortativeness in the assignment of workers to establishments explain a large share of the rise in inequality along all three dimensions.
    Keywords: J00 ; J31 ; J40 ; ddc:330 ; wage inequality ; assortative matching ; Lohnstruktur ; Arbeitsplatz ; Matching ; Unternehmen ; Schätzung ; Deutschland
    Language: English
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  • 3
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: We study empirically whether there is scope for parents to shape the economic preferences and attitudes of their children through purposeful investments. We exploit information on the risk and trust attitudes of parents and their children, as well as rich information about parental efforts in the upbringing of their children from the German Socio-Economic Panel Study. Our results show that parents who invest more in the upbringing of their children are more similar to them with respect to risk and trust attitudes and thus transmit their own attitudes more strongly. The results are robust to including variables on the relationship between children and parents, family size, and the parents' socioeconomic background.
    Keywords: D1 ; D8 ; J13 ; J62 ; Z13 ; ddc:330 ; risk preferences ; trust ; intergenerational transmission ; cultural transmission ; social mobility ; GSOEP ; Eltern ; Risikopräferenz ; Vertrauen ; Kognition ; Kinder ; Soziale Mobilität ; Generationengerechtigkeit ; Deutschland
    Language: English
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  • 4
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: This paper investigates the link between variation in the supply of workers who participate in specific types of active labour market policies (ALMPs) and firm performance using a new exceptionally informative German employer-employee data base. For identification we exploit that German local employment agencies (LEAs) have a high degree of autonomy in determining their own mix of ALMPs and that firms' hiring regions overlap only imperfectly with the areas of responsibility of the LEAs. Our results indicate that in general firms do not benefit from ALMPs and in some cases may even be harmed by certain programs, in particular by subsidized employment and longer training programs. These findings complement the negative assessment of the cost-effectiveness of ALMPs from the empirical literature on the effects for participants.
    Keywords: J68 ; ddc:330 ; subsidized employment programs ; training programs ; regional variation ; program evaluation ; Arbeitsmarktpolitik ; Lohnsubvention ; Weiterbildung ; Wirkungsanalyse ; Unternehmenserfolg ; Arbeitsmarktintegration ; Deutschland
    Language: English
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  • 5
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: We study how the EU enlargement in 2004 and the Great Recession in the late 2000s have shaped the scale and composition of migration flows from the New Member States to Germany. We demonstrate that immigration increased substantially despite the restrictions on the German labor market, and that net flows decreased to zero at the outset of the recession. The cohorts arriving after 2004 had on average a lower education than the previous arrival cohort, but the wage gap compared to Germans became narrower over time. Almost 10 years after EU enlargement, we re-assess the transitional arrangements, and argue that Germany would have been better off, had it immediately opened its labor market. Finally, the Great recession allows us to study how effective migration within the EU is as an adjustment mechanism. Our data clearly show an increase in immigration from countries that were hit by the crisis, although the annual net flows are still too small to significantly reduce unemployment in the countries hit by the crisis.
    Keywords: F22 ; ddc:330 ; EU enlargement ; migration ; Germany ; Internationale Wanderung ; Osteuropäer ; Einwanderung ; Migranten ; Arbeitsmarkt ; Deutschland ; EU-Erweiterung ; EU-Staaten (Osteuropa) ; Wirtschaftskrise ; Eurozone
    Language: English
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  • 6
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2015-05-22
    Description: By conventional statistics, youth unemployment seems to be quite moderate in Korea: ‘only’ 9.6 percent of the ‘active’ youth labour force was unemployed compared to 21.4 percent in EU-27 in 2011. Germany, with a youth unemployment rate of 8.5 percent, is one of the very few European countries outperforming Korea. But the Korean case is in one respect unusual. From the perspective of intergenerational risk sharing Korea’s youth unemployment rate is 4.6 times higher than the unemployment rate of adults aged 45 to 54; in Germany, this figure is only 1.7. Further peculiarities come up if unemployment is measured by the number of youth not in employment, education or training (NEET) in percent of the total youth population. Korea’s NEET figures are at the top in OECD countries, especially for youth with tertiary education. This paper throws some light to explain this conundrum: It sketches, first, the main causes of youth unemployment and the general policy interventions; because a large part of the problem is structural, possible immediate measures to avoid long-term scar effects for the unemployed youth are briefly reviewed; differences between Europe and the United States show in particular the importance of automatic stabilizers like unemployment insurance in order to reduce the pressure on unfavourable risk sharing for youth in times of recession. The main part is devoted to possible lessons for Korea from Europe, in particular from Germany. Dual education and vocational training systems that emphasise middle level and market oriented skills are identified as institutional device both for fairer intergenerational risk sharing as well as for a smoother transition from school to work. In its outlook, the paper comes back to the puzzle of highly and academically inflated youth unemployment by referring to a possible hidden cause in Korea: A strong insurance motive might explain the overall striving for an academic degree inducing not only wasteful congestion at labour market entries but also unfair job allocation through credentialism.
    Keywords: E24 ; I24 ; J64 ; ddc:330 ; unemployment ; education ; vocational training ; labour market policy ; transitional labour markets ; risk sharing ; Jugendarbeitslosigkeit ; Arbeitsmarktintegration ; Betriebliche Ausbildung ; Südkorea ; Vergleich ; Deutschland
    Language: English
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  • 7
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2015-05-22
    Description: Sector-specific surcharge collective labor agreements between the bargaining partners in the staffing industry allow for a reduction of wage gaps between agency workers and permanent staff in case of long-term job assignments to user companies. Surcharges up to 50% after a surcharge-free period between four and six weeks close the wage gap in nine industries for the temporary work agencies. The paper summarizes the development that lead to these collective labor agreements and analyzes repercussions on potential upward mobility of previously unemployed who start their career as agency workers in the low-wage sector. Furthermore, it highlights the interaction with the basic income scheme, documents new evidence on sustainable employment and draws conclusions for the precarious work discussion. It turns out that these new surcharges allow agency workers to leave the low-wage sector in case of longer job assignment in the core user company industries such as the metal and electrical industry.
    Keywords: I2 ; J2 ; J4 ; ddc:330 ; temporary agency work ; staffing industry ; collective labor agreement ; low-wage sector ; precarious work ; Leiharbeit ; Lohnpolitik ; Niedriglohn ; Wirkungsanalyse ; Arbeitsmarktintegration ; Deutschland
    Language: English
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  • 8
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2017-08-31
    Description: The effects of childbirth on future labor market outcomes are a key issue for policy discussion. This paper implements a dynamic treatment approach to estimate the effect of having the first child now versus later on future employment for the case of Germany, a country with a long maternity leave coverage. Effect heterogeneity is assessed by estimating ex post outcome regressions. Based on SOEP data, we provide estimates at a monthly frequency. The results show that there are very strong negative employment effects after childbirth. Although the employment loss is reduced over the first five years following childbirth, it does not level off to zero. The employment loss is lower for mothers with a university degree. It is especially high for medium-skilled mothers with long pre-birth employment experience. We find a significant reduction in the employment loss for more recent childbirths.
    Keywords: C14 ; J13 ; J22 ; ddc:330 ; female labor supply ; maternity leave ; dynamic treatment effect ; inverse probability weighting ; Geburt ; Erwerbstätigkeit ; Mütter ; Mutterschutz ; Dauer ; Beschäftigungseffekt ; Deutschland
    Language: English
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  • 9
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2019-03-13
    Description: There is a large body of literature analyzing the relationship between objective economic conditions and voting behavior, but there is very little evidence of how perceived economic insecurity impacts on political preferences. Using seventeen years of household panel data from the German Socio-Economic Panel, we examine whether job loss fears impact on individuals' party identification. Consistent with the deprivation theory, we find strong and robust evidence that subjective job loss fears foster affinity for parties at the far right-wing of the political spectrum. The effects are broadly comparable in direction and magnitude with the ones from objective unemployment and being out of the labor force. However, our empirical estimates do not suggest that job loss fears result in people withdrawing their support from political parties altogether or increasingly identify with extremist left-wing parties.
    Keywords: J01 ; J63 ; P16 ; ddc:330 ; job insecurity ; party identification ; prospective voting ; economic worries ; Arbeitslosigkeit ; Risiko ; Arbeitsplatzsicherung ; Wahrnehmung ; Wahlverhalten ; Politische Partei ; Schätzung ; Deutschland
    Language: English
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  • 10
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2019-03-13
    Description: There are strong two-way links between parent and child happiness (life satisfaction), even for 'children' who have grown up, moved to their own home and partnered themselves. German panel evidence shows that transmission of (un)happiness from parents to children is partly due to transmission of values and behaviors known to be associated with happiness (Headey, Wagner and Muffels, 2010, 2012). These values and behaviors include giving priority to pro-social and family values, rather than material values, maintaining a preferred balance between work and leisure, active social and community participation, and regular exercise. Both parents have about equal influence on the values and behaviors which children adopt. However, the life satisfaction of adult 'children' continues to be directly influenced by the life satisfaction of their mothers, with the influence of fathers being only indirect, via transmission of values and behaviors. There appears to be a lifelong happiness dividend (or unhappiness dividend) due to parenting. Structural equation models with two-way causation indicate that the life satisfaction of offspring can significantly affect the satisfaction of their parents, as well as vice-versa, long after the 'children' have left home. Data come from 25 waves of the German Socio-Economic Panel Survey (SOEP, 1984-2008). SOEP is the only panel survey worldwide in which data on life satisfaction have been obtained from parents and an adequate sub-sample of children no longer living in the parental home.
    Keywords: D60 ; I31 ; J13 ; J22 ; C33 ; ddc:330 ; life satisfaction ; subjective well-being ; child happiness ; inter-generational transmission ; German Socio-Economic Panel (SOEP) ; structural equation models ; Zufriedenheit ; Familiensoziologie ; Generationenbeziehungen ; Schätzung ; Deutschland
    Language: English
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  • 11
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2019-03-13
    Description: Based on representative data, the German Micro-Census, we provide an overview of the development of self-employment and entrepreneurship in Germany between 1991 and 2010, the first two decades after reunification. We investigate the socioeconomic background of these individuals, their education, previous employment status, and their income level. We observe a unique increase in self-employment in Germany by 40 percent which can partly be attributed to the transformation process of East Germany and to the shift to the service sector. We notice a yearly start-up rate of 1 percent among the working population (almost 20 percent of them being restarters), a decision that pays for the majority of individuals in terms of income. Contrary to other countries, in Germany there is a positive relationship between educational levels and the probability of starting a business.
    Keywords: L26 ; D22 ; ddc:330 ; entrepreneurship ; self-employment ; start-ups ; Germany ; Selbstständige ; Unternehmer ; Unternehmensgründung ; Bildungsniveau ; Schätzung ; Deutschland
    Language: English
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  • 12
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2019-03-13
    Description: This paper analyzes the extent to which intergenerational upward and downward mobility in earnings are related to individuals' preferences for redistribution. A novel survey question from the German Socio-Economic Panel Study - whether the taxes paid by unskilled workers are too high, adequate or too low - are used to elicit attitudes toward redistribution. Intergenerational mobility with regard to long-term earnings is measured using a rich panel data spanning an observation window of 22 years. The results reveal that intergenerational mobility is significantly related to preferences for redistribution. The empirical results yield strong and robust support for Piketty's (1995) rational-learning theory: individuals who experience upward (downward) intergenerational mobility are less (more) likely to favor redistribution taxation policies.
    Keywords: J62 ; H23 ; ddc:330 ; preferences for redistribution ; intergenerational mobility ; long-run earnings ; panel data ; Einkommen ; Soziale Mobilität ; Generationenbeziehungen ; Einkommensumverteilung ; Präferenztheorie ; Schätzung ; Deutschland
    Language: English
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  • 13
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2015-05-22
    Description: What are the migration policy lessons that can be learned from the Spanish case? Unlike countries with a large tradition of receiving immigrants, in Spain having a high-school degree does not give immigrants an advantage in terms of wage or occupational assimilation (relative to their native counterparts). This paper discusses the potential explanations behind this result and analyzes the consequences of this result in terms of migration policy recommendations.
    Keywords: J15 ; J24 ; J61 ; J62 ; ddc:330 ; wage assimilation ; occupational assimilation ; education ; migration policy ; Wirtschaftskrise ; Arbeitsmarkt ; Arbeitslosigkeit ; Arbeitsmarktreform ; Erwerbstätigkeit ; Arbeitsangebot ; Alternde Bevölkerung ; Fachkräfte ; Deutschland
    Language: English
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  • 14
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: This study analyses employers' support for the introduction of industry-specific minimum wages as a cost-raising strategy in order to deter market entry. Using a unique data set consisting of 800 firms in the German service sector, we find some evidence that high-productivity employers support minimum wages. We further show that minimum wage support is higher in industries and regions with low barriers to entry. This is particularly the case in East Germany, where the perceived threat of low-wage competition from Central and Eastern European Countries is relatively high. In addition, firms paying collectively agreed wages are more strongly in favour of minimum wages if union coverage is low and the mark-up of union wage rates is high.
    Keywords: J38 ; J50 ; L41 ; L80 ; ddc:330 ; minimum wage ; product market competition ; service sector ; Mindestlohn ; Unternehmer ; Dienstleistungssektor ; Wettbewerb ; Markteintritt ; Deutschland ; Neue Bundesländer
    Language: English
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  • 15
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: While high rates of youth unemployment are a severe problem in most European countries, the program evaluation literature shows that disadvantaged youths constitute a group that is particularly difficult to assist effectively. As innovative measures are thus needed, we evaluate a German pilot program that targets low-skilled young unemployed and combines three components: a) individual coaching, b) classroom training and c) temporary work. Using an ex-post quasi-randomization approach, our analysis shows that the program has a positive impact on the post-program employment probability of participants.
    Keywords: J08 ; J68 ; ddc:330 ; program evaluation ; disadvantaged youths ; temporary work ; ALMP ; Jugendarbeitslosigkeit ; Arbeitsmarktpolitik ; Wirkungsanalyse ; Befristeter Arbeitsvertrag ; Jugendliche ; Berufseinstieg ; Deutschland
    Language: English
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  • 16
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: It is sometimes claimed that the coverage of collective bargaining in Germany is considerably understated because of orientation, a process whereby uncovered firms profess to shadow the wages set under sectoral bargaining. Yet importantly, at a time when collective bargaining proper has been in retreat, little is known of corresponding trends in the frequency of indirect coverage, still less of the degree to which wages are aligned in practice. Using nationally representative data for 2000-2010, this paper charts the extent of orientation in the uncovered sector, and tracks average wages across bargaining regimes as well as changes in wages from switches in regime. It is reported that orientation is growing with the decline in sectoral bargaining and that orienting firms do pay higher wages than their counterparts in the collective bargaining free zone. Yet in neither case - frequency nor remuneration - is the degree of 'compensation' recorded other than partial.
    Keywords: J31 ; J5 ; ddc:330 ; orientation ; erosion of collective bargaining ; uncovered sector ; sectoral bargaining ; wages ; regime shifts ; Lohnverhandlungen ; Tarifpolitik ; Lohnpolitik ; Arbeitsmarktflexibilität ; Deutschland
    Language: English
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  • 17
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: Does immigration accelerate sectoral change towards high-productivity sectors? This paper uses the mass displacement of ethnic Germans from Eastern Europe to West Germany after World War II as a natural experiment to study this question. A simple two-sector model of the economy, in which moving costs prevent the marginal product of labor to be equalized across sectors, predicts that immigration boosts output per worker by expanding the high-productivity sector, but decreases output per worker within a sector. Using German district-level data from before and after the war, we find strong empirical support for these predictions.
    Keywords: J61 ; J21 ; C36 ; N34 ; ddc:330 ; immigration ; sectoral change ; output growth ; post-war Germany ; Einwanderung ; Aussiedler ; Strukturwandel ; Produktivität ; Wirtschaftswachstum ; Mehr-Sektoren-Modell ; Schätzung ; Alte Bundesländer ; Deutschland
    Language: English
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  • 18
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: We reassess the empirical effect of income and employment on self-reported well-being. Our analysis makes use of a novel two-step estimation procedure that allows applying instrumental variable regressions with ordinal observable data. As suggested by the theory of incomplete markets, we differentiate between the effects of persistent and transitory income shocks. In line with this theory, we find that persistent shocks have a significant impact on happiness while transitory shocks do not. This has consequences also for inference about the happiness effect of employment. We find that employment per se is rather associated with a decline in happiness.
    Keywords: E21 ; D12 ; D60 ; ddc:330 ; incomplete markets ; happiness ; income persistence ; Zufriedenheit ; Einkommen ; Schock ; Beschäftigung ; Schätzung ; Deutschland
    Language: English
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  • 19
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: This paper examines the effect of immigration directly on the overall utility of natives. To the best of our knowledge, this is the first paper to explore such nexus. Combining information from the German Socio-Economic Panel dataset with detailed local labour market characteristics for the period 1997 to 2007, we investigate how changes in the spatial concentration of immigrants affect the subjective well-being of the German-born population. Our results suggest the existence of a robust, positive effect of immigration on natives' well-being. The presence of confounding local labour market characteristics has a negligible impact on the estimates. Furthermore, we find substantial evidence that the effect of immigration on well-being is a function of the assimilation of immigrants in the region. The effect of immigration is higher in regions with an intermediate level of economic assimilation and is essentially zero in areas where immigrants are either least or fully economically integrated. We conduct robustness checks to address the potential endogeneity between subjective well-being and immigration. Our tests indicate that natives are not crowded out by immigrants, and that the sorting of immigrants to regions with higher SWB is weak. This suggests that our main findings are not driven or strongly influenced by reverse causality or selectivity.
    Keywords: C90 ; J61 ; D63 ; ddc:330 ; immigration ; subjective well-being ; assimilation ; Einwanderung ; Migranten ; Soziale Integration ; Bevölkerung ; Zufriedenheit ; Schätzung ; Region ; Deutschland
    Language: English
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  • 20
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: Is there a reward for basic skills in the German labor market? To answer this question, we examine the relationship between literacy, numeracy and monthly gross earnings of full-time employed workers. We use data from the ALWA survey, augmented by test scores on basic cognitive skills as well as administrative earnings data. Our results indicate that earnings are positively related to both types of skills. There furthermore is no evidence for non-linearity in this relationship and only little heterogeneity when differentiating by sub-groups.
    Keywords: I21 ; J31 ; ddc:330 ; literacy ; numeracy ; earnings ; administrative data ; Germany ; ALWA ; Analphabetismus ; Mathematik ; Bildungsniveau ; Lohn ; Schätzung ; Bildungsertrag ; Deutschland
    Language: English
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  • 21
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: We review research on the impact of immigration on income distribution. We discuss routes through which immigration can affect income distribution in the host and source countries, including compositional effects and effects on native incomes. Immigration may affect the composition of skills among the residents of a country. Moreover, immigrants can, by changing relative factor supplies, affect native wage and employment rates and the return to capital. We then provide evidence on the level and recent increases in immigration to OECD countries and on the distribution of native and immigrant educational attainment. We next provide a decomposition of 1979-2009 changes in US wage inequality, highlighting the effects of immigration on workforce composition. We then consider the economic theory of the impact of immigration on income distribution, emphasizing labor market substitution and complementarity between natives and immigrants. Further, by changing job opportunities or child care availability, immigrants can affect family, as well as individual, income distribution. We review research methodologies used to estimate the impact of immigration on the native income distribution. These include the structural approach (estimating substitution and complementarity among factors of production, including capital and labor force groups) as well as the natural experiment approach (seeking exogenous sources of variation in immigration) to studying the labor market. We then discuss evidence on these questions for Austria, Britain, France, Germany, Hong Kong, Israel, Portugal, Spain and the United States, as well as the impact of emigration on source country income distribution.
    Keywords: D33 ; J61 ; ddc:330 ; international migration ; factor income distribution ; Einwanderung ; Internationale Wanderung ; Funktionelle Einkommensverteilung ; Beschäftigungseffekt ; Verteilungswirkung ; OECD-Staaten ; Österreich ; Großbritannien ; Frankreich ; Deutschland ; Hongkong ; Israel ; Portugal ; Spanien ; USA
    Language: English
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  • 22
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: A rise in population caused by increased immigration is sometimes accompanied by concerns that the increase in population puts additional or differential pressure on welfare services which might affect the net fiscal contribution of immigrants. The UK and Germany have experienced significant increases in immigration in recent years and this study uses longitudinal data from both countries to examine whether immigrants differ in their use of health services than native born individuals on arrival and over time. While immigrants to Germany, but not the UK, are more likely to self-report poor health than the native-born population, the samples of immigrants use hospital and GP services at broadly the same rate as the native born populations in both countries. Controls for observed and unobserved differences between immigrants and native-born sample populations make little difference to these broad findings.
    Keywords: H00 ; J00 ; ddc:330 ; immigration ; health ; health service ; Einwanderung ; Migranten ; Gesundheitsversorgung ; Nachfrage ; Deutschland ; Großbritannien
    Language: English
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  • 23
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: In this paper, we study how wage mobility in the low-wage sector has changed in western Germany between 1984 and 2004. Using German individual register data, we document a clear upward trend in the persistence of low-wage employment for both men and women. Next to compositional shifts of the low-wage sector relative to the high-wage sector, this trend may be explained by an increase in genuine state dependence, which occurs if low-wage employment today causes low-wage employment in the future for reasons of, e.g., stigmatization or human capital depreciation. To isolate the latter, we model low-pay transitions by estimating a series of multivariate probit models. We address the initial conditions problem and the endogeneity of earnings attrition in our estimation approach by accounting for the selection into low-wage employment and earnings retention. Our findings for men and women point to an upward trend of genuine state dependence among low-paid workers especially since the beginning of the 1990s. Using decomposition techniques, we show that between 35 and 54 per cent of the increase in genuine state dependence during the 1990s is accounted for by compositional effects.
    Keywords: C23 ; J31 ; L13 ; ddc:330 ; wage mobility ; trivariate probit ; administrative data ; Niedriglohn ; Lohnstruktur ; Soziale Mobilität ; Staatliche Einflussnahme ; Schätzung ; Deutschland
    Language: English
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  • 24
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: We investigate the impact of offshoring on individual level wages and unemployment probabilities and pay particular attention to the question of whether workers on temporary contracts are affected differently than workers on permanent contracts. Data are taken from the German Socio-Economic Panel (SOEP), linked with industry-level data on offshoring of materials and services inputs calculated from the World Input Output Database (WIOD). In manufacturing we find that temporary workers face a significant reduction in wages as materials offshoring increases, while permanent workers' wages are unaffected or even tend to increase. Offshoring of core activities generally also tends to reduce the probability of becoming unemployed, and more so for temporary than for permanent workers. By contrast, offshoring of services inputs does not have any statistically significant effects on either wages or employment probabilities in manufacturing. In the service industries, workers are affected in terms of employment probabilities from offshoring of services inputs only, although, in contrast to manufacturing industries, there are no statistically significant effects on individual wages from any type of offshoring.
    Keywords: J31 ; F14 ; ddc:330 ; offshoring ; temporary work ; job security ; wages ; Auslandsverlagerung ; Befristeter Arbeitsvertrag ; Lohnstruktur ; Arbeitsplatzsicherung ; Industrie ; Dienstleistungssektor ; Deutschland
    Language: English
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  • 25
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: The German Child Benefit (Kindergeld) is paid to legal guardians of children as a cash benefit. This study employs exogenous variations in the amount of child benefit received by households to investigate the extent to which these various changes have translated into an improvement in the circumstances of children related to their well-being. I use the German Socio-Economic Panel to estimate the impact of a given change in the child benefit on food expenditures of households, the probability of owning a home, the size of the home, as well as the probability of parents' smoking, alcohol consumption, and parents' social activities such as traveling, visiting movie theaters, going to pop concerts, attending classical music concerts or other cultural events. Households primarily increase per capita food expenditures in response to increases in child benefit, and they also improve housing conditions. I do not find a significant effect of child benefit on parents' smoking or drinking, but parents of older children use the child benefit to pay for their social and personal entertainment activities.
    Keywords: I38 ; D12 ; H31 ; ddc:330 ; child benefit ; fungibility of income ; child well-being ; Familienleistungsausgleich ; Kinder ; Lebensstandard ; Lebensqualität ; Deutschland
    Language: English
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  • 26
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: Subjective well-being is primarily treated as an outcome variable in the economic literature. However, is happiness also a driver of behavior and life's outcomes? Rich survey data of recent entrants into unemployment in Germany show that a significant inverted U-shaped relationship exists between residual happiness and an unemployed individual's future reemployment probability and the reentry wage. Residual life satisfaction displays higher (or lower) satisfaction levels than would be predicted by a number of socioeconomic and demographic characteristics. This paper is the first to show that happiness is mainly a predictor for self-employment and less for standard reemployment. Related findings suggest that happiness matters for male unemployed, and the concept of locus of control is able to explain part of the effect. If reemployment and higher wages are considered desirable outcomes for the unemployed individual and society, the shape of the effect suggests an optimal level of happiness, which is not necessarily the highest.
    Keywords: J60 ; J64 ; I31 ; ddc:330 ; unemployment ; job search ; happiness ; reemployment ; Germany ; Zufriedenheit ; Arbeitslosigkeit ; Arbeitsuche ; Berufliche Integration ; Schätzung ; Deutschland
    Language: English
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  • 27
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: This empirical research note documents the relationship between composition of a firm's workforce (with a special focus on age and gender) and its performance with respect to innovative activities (outlays and employment in research and development (R&D)) for a large representative sample of enterprises from manufacturing industries in Germany using unique newly available data. We find that firms with a higher share of older workers have significantly lower proportions of R&D outlays in total revenues and of R&D employment in total employment, whereas firms with a higher share of female employment seem to be more active in R&D.
    Keywords: D22 ; D24 ; J21 ; J24 ; L25 ; ddc:330 ; ageing ; firm performance ; gender ; Germany ; innovation ; R&D ; Innovation ; Industrielle Forschung ; Ältere Arbeitskräfte ; Weibliche Arbeitskräfte ; Verarbeitendes Gewerbe ; Altersgruppe ; Geschlecht ; Deutschland
    Language: English
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  • 28
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: Questions about compensation structures and incentive effects of pay-for-performance components are important for firms' Human Resource Management as well as for economics in general and labor economics in particular. This paper provides scarce insider econometric evidence on the structure and the incentive effects of fixed base salaries, paid bonuses, and agreed bonuses under a Management-by-Objectives (MBO) incentive scheme. Six years of personnel data of 177 managers in a German company are analyzed. The main findings are: (1) base salaries increase significantly with age, whereas bonuses decrease with age; (2) larger agreed bonuses are correlated with fewer absent working days.
    Keywords: J22 ; J24 ; J31 ; J33 ; M12 ; M52 ; ddc:330 ; absenteeism ; bonus ; effort ; incentives ; insider econometrics ; wages ; Führungskräfte ; Leistungsentgelt ; Leistungsanreiz ; Fehlzeit ; Altersgruppe ; Deutschland
    Language: English
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  • 29
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: The major event of the 9/11 terror attacks is likely to have induced an increase in anti-immigrant and anti-foreigner sentiments, not only among US residents but also beyond US borders. Using longitudinal data from the German Socio-Economic Panel and exploiting exogenous variation in interview timing throughout 2001, I find that the terror attacks in the US caused an immediate shift of around 40 percent of one within standard deviation to more negative attitudes toward immigration and resulting in a considerable decrease in concerns over xenophobic hostility among the German population. Furthermore, in exploiting within-individual variation this quasi-experiment provides evidence on the role of education in moderating the negative terrorism shock.
    Keywords: F22 ; I21 ; J61 ; ddc:330 ; immigration ; attitudes ; education ; September 11 ; terrorism ; Ethnische Diskriminierung ; Deutsche ; Bildungsniveau ; Einwanderung ; Deutschland ; Politische Gewalt ; USA
    Language: English
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  • 30
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: In this paper, human capital investments are evaluated by assuming heterogeneous returns to schooling. We use the potential outcome approach to measure the causal effect of human capital investments on earnings as a continuous treatment effect. Empirical evidence is based on a sample of West German full-time employed males (BIBB/IAB survey on educational and vocational attainment and career 1998/99). Our estimate of the average partial effect (APE) of an additional year of schooling amounts to 8.7%, which is higher than OLS estimates and quite similar to conventional instrumental variable estimates.
    Keywords: J21 ; J24 ; J31 ; ddc:330 ; returns to schooling ; human capital ; heterogeneity ; Bildungsinvestition ; Bildungsertrag ; Schätzung ; Deutschland
    Language: English
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  • 31
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: This paper uses comprehensive high-quality panel data from official statistics for exporting enterprises to investigate the micro-structure of the recent export collapse in manufacturing industries in Germany during the crisis of 2008/2009. Almost all of the decline in exports was due to negative changes of exports in firms that continue to export (i.e. at the so-called intensive margin) while the decrease of exports due to export stoppers (at the so-called extensive margin) was tiny. It is shown that Idiosyncratic shocks to very large firms played a decisive role in shaping the export collapse.
    Keywords: F14 ; E32 ; ddc:330 ; exports ; great trade collapse ; granular economy ; Germany ; Export ; Wirtschaftskrise ; Schock ; Exportindustrie ; Industriegüteraußenhandel ; Deutschland
    Language: English
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  • 32
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: This paper uses both subjective well-being and survey experimental data to analyze how people's positional concerns regarding income and goods vary with age. The subjective well-being approach is mainly based on German panel data for the period 1984-2009 (German Socio-Economic Panel), while the survey experimental approach is based on a tailor-made experimental design conducted among Swedish adults. Our analysis suggests that the degree of positional concerns is not homogenous across the life cycle. Our different analytical approaches show a robust life cycle pattern of positional concerns: young people experience no or a low degree of positional concerns, yet the level of concerns for income increases gradually and significantly with age. The results also differ across goods: while car consumption is similar to income, the positional concern for leisure time decreases through the life cycle.
    Keywords: C90 ; D63 ; ddc:330 ; positional concerns ; life cycle ; subjective well-being ; survey experiment ; Sozialer Status ; Lebensverlauf ; Zufriedenheit ; Schätzung ; Deutschland ; Feldforschung ; Schweden
    Language: English
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  • 33
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: We present a semiparametric method to estimate group-level dispersion, which is particularly effective in the presence of censored data. We apply this procedure to obtain measures of occupation-specific wage dispersion using top-coded administrative wage data from the German IAB Employment Sample (IABS). We then relate these robust measures of earnings risk to the risk attitudes of individuals working in these occupations. We find that willingness to take risk is positively correlated with the wage dispersion of an individual's occupation.
    Keywords: C14 ; C21 ; C24 ; J24 ; J31 ; D01 ; D81 ; ddc:330 ; dispersion estimation ; earnings risk ; censoring ; quantile regression ; occupational choice ; sorting ; risk preferences ; SOEP ; IABS ; Beruf ; Lohnstruktur ; Risiko ; Berufswahl ; Risikopräferenz ; Schätzung ; Deutschland
    Language: English
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  • 34
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: People gain utility from occupying a higher ranked position in the income distribution of the reference group. This paper investigates whether these gains depend on an individual's set of non-cognitive skills. Using the 2000-2008 waves of the German Socioeconomic Panel dataset (SOEP), a subjective question on Life Satisfaction, and three different sets of non-cognitive skills indicators, we find significant and robust differences across skills groups. People who are more neurotic, extravert and have low external locus of control and low negative reciprocity are more sensitive to their individual position in the economic ladder. By contrast, the Life Satisfaction reaction to changes in economic status is significantly lower among individuals who score high (low) in negative (positive) reciprocity, and are at the bottom of the distribution of neuroticism, extraversion. The heterogeneity on the importance of income comparisons needs to be taken into account when, for example, introducing them into economic models, predicting individuals' behaviour, or making welfare judgments.
    Keywords: D62 ; I31 ; ddc:330 ; life satisfaction ; income comparisons ; personality traits ; Zufriedenheit ; Einkommensverteilung ; Sozialer Status ; Nutzen ; Persönlichkeitspsychologie ; Schätzung ; Deutschland
    Language: English
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  • 35
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: This paper examines the question of whether risk aversion of prime-age workers is negatively correlated with human height to a statistically significant degree. A variety of estimation methods, tests and specifications yield robust results that permit one to answer this question in the affirmative. Hausman-Taylor panel estimates, however, reveal that height effects disappear if personality traits and skills, parents' behaviour, and interactions between environment and individual abilities appear simultaneously. Height is a good proxy for these influences if they are not observable. Not only one factor but a combination of several traits and interaction effects can describe the time-invariant individual effect in a panel model of risk attitude.
    Keywords: D90 ; J13 ; J24 ; ddc:330 ; height ; risk preference ; Risikoprämie ; Biologische Daten ; Schätzung ; Deutschland
    Language: English
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  • 36
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: This paper analyses the effect of information disseminated by the Internet on voting behavior. We address endogeneity in Internet availability by exploiting regional and technological peculiarities of the preexisting voice telephony network that hinder the roll-out of fixed-line broadband infrastructure for high-speed Internet. We find small negative effects of Internet availability on voter turnout, and no evidence that the Internet systematically benefits single parties. Robustness tests including placebo estimations from the pre-Internet era confirm our results. We relate differences in the Internet effect between national and local elections to a crowding out of national but not local newspapers.
    Keywords: D72 ; C50 ; L86 ; ddc:330 ; elections ; political economy ; instrumental variables ; mass media ; internet ; Wahlverhalten ; Informationsverhalten ; Kommunikationsmedien ; Internet ; Deutschland
    Language: English
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  • 37
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: It is puzzling that people feel quite unhappy when they become unemployed, while at the same time active labor market policies are needed to bring unemployed back to work more quickly. Using data from the German Socio-Economic Panel, we investigate whether there is indeed such a puzzle. First, we find that nearly half of the unemployed do not experience a drop in happiness, which might explain why at least some workers need to be activated. In addition to that, we find that even though unemployed who experience a drop in happiness search more actively for a job, it does not speed up their job finding. Apparently, there is no link between unhappiness and the speed of job finding. Hence, there is no contradiction between unemployed being unhappy and the need for activation policies.
    Keywords: I31 ; J64 ; ddc:330 ; happiness ; unemployment duration ; Zufriedenheit ; Arbeitslosigkeit ; Dauer ; Deutschland
    Language: English
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  • 38
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: This paper assesses the importance of reverse causality when evaluating the impact of training duration for unemployed workers. We use planned duration as an instrumental variable for actual duration. Our results suggest that the potential endogeneity of exits seems to be only relevant in the lower and upper part of the treatment duration distribution.
    Keywords: C21 ; C26 ; J67 ; ddc:330 ; treatment duration ; local average treatment effect ; dropouts ; Arbeitslosigkeit ; Weiterbildung ; Dauer ; Abbrecher ; Schätzung ; Deutschland
    Language: English
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  • 39
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: In some countries including Germany unemployed workers can increase their income during job search by taking up marginal employment up to a threshold without any deduction from their benefits. Marginal employment can be considered as a wage subsidy as it lowers labour costs for firms owing to reduced social security contributions, and increases work incentives due to higher net earnings. Additional earnings during unemployment might lead to higher reservation wages prolonging the duration of unemployment, yet also giving unemployed individuals more time to search for better and more stable jobs. Furthermore, marginal employment might lower human capital deterioration and raise the job arrival rate due to network effects. To evaluate the impact of marginal employment on unemployment duration and subsequent job quality, we consider a sample of fresh entries into unemployment. Our results suggest that marginal employment leads to more stable post-unemployment jobs, has no impact on wages, and increases the job-finding probability if it is related to previous sectoral experience of the unemployed worker. We find evidence for time-varying treatment effects: whilst there is no significant impact during the first twelve months of unemployment, job finding probabilities increase after one year and the impact on job stability is stronger if the jobs are taken up later within the unemployment spell.
    Keywords: J64 ; C41 ; C33 ; ddc:330 ; marginal employment ; unemployment duration ; job search ; employment stability ; timing of events model ; Arbeitslosigkeit ; Nebentätigkeit ; Wirkungsanalyse ; Dauer ; Arbeitsuche ; Qualifikation ; Matching ; Deutschland
    Language: English
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  • 40
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: This paper addresses the question to which extent the complementarity between education and training can be attributed to differences in observable characteristics, i.e. to individual, job and firm specific characteristics. The novelty of this paper is to analyze previously unconsidered characteristics, in particular, personality traits and tasks performed at work which are taken into account in addition to the standard individual specific determinants. Results show that tasks performed at work are strong predictors of training participation while personality traits are not. Once working tasks and other job related characteristics are controlled for, the skill gap in training participation drops considerably for off-the-job training and vanishes for on-the-job training.
    Keywords: I21 ; J24 ; ddc:330 ; training ; personality traits ; working tasks ; Oaxaca decomposition ; Weiterbildung ; Berufsbildung ; Anforderungsprofil ; Persönlichkeitspsychologie ; Schätzung ; Deutschland
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  • 41
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: In this paper, we investigate the effects of works councils on apprenticeship training in Germany. The German law attributes works councils substantial information and co-determination rights to training-related issues. Thus, works councils may also have an impact on the cost-benefit relation of workplace training. Using detailed firm-level data containing information on the costs and benefits of apprenticeship training, we find that firms with works councils make a significantly higher net investment in training compared with firms without such an institution. We also find that the fraction of former trainees still employed with the same firm five years after training is significantly higher in the presence of works councils, thus enabling firms to recoup training investments over a longer time horizon. Furthermore, all works council effects are much more pronounced for firms covered by collective bargaining agreements.
    Keywords: J24 ; J50 ; M53 ; ddc:330 ; works councils ; collective bargaining agreement ; apprenticeship training ; firm-sponsored training ; Betriebsrat ; Betriebliche Ausbildung ; Kosten-Nutzen-Analyse ; Deutschland
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  • 42
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: Empirical investigations with enterprise level data from official statistics often use the average wage as a proxy variable for the qualification of the workforce, mostly due to the lack of detailed information on the qualification of the employees. This paper uses unique newly available data for German enterprises from the KombiFiD project that for the first time combine information from the statistics of employees covered by social security and information from surveys performed by the Statistical Offices to look at the quality of this proxy variable by investigating the link between the average wage in a firm and the qualification of the workforce. Furthermore, it demonstrates that detailed information on the qualification of the workforce sheds new light on the role of highly qualified employees for success on export markets that is not revealed by the average wage as a proxy variable. Based on the results of this paper it is argued that combined firm level data that stem from different data producers should be widely accessible for research.
    Keywords: C81 ; F14 ; J31 ; ddc:330 ; qualification of workforce ; average wage ; export ; firm level data ; Qualifikation ; Arbeitskräfte ; Lohnstruktur ; Außenhandelswirtschaft ; Exportindustrie ; Schätzung ; Deutschland
    Language: English
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  • 43
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: Although a broad field of literature on incentive theory exists, employer-provided tangible goods (hereafter called benefits) have so far been neglected by economic research. A remarkable exception is an empirical study by Oyer (2008). In our study, we test some of his findings by drawing on a German data set. We use two waves of the GSOEP data (2006, 2008) to analyze the occurrence of benefits and their effects on employees' satisfaction. Our results provide evidence for economic as well as psychological explanations. Looking at differences in firms' and employees' characteristics we find that cost efficiency concerns, the purpose to signal good working conditions and the aim to ease employees' effort costs are evident reasons to provide benefits. Furthermore, analyzing the impact of tangible and monetary incentives on satisfaction and employees' feeling of being acknowledged by employers, we find different motivational effects. Our results support the psychological explanation that benefits are evaluated separately from other monetary wage components and are more likely to express employers' concern for their employees and recognition of their performance.
    Keywords: C83 ; J32 ; M52 ; ddc:330 ; nonmonetary incentives ; benefits ; work motivation ; Leistungsanreiz ; Arbeitsbedingungen ; Leistungsmotivation ; Deutschland
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  • 44
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: The compensation of executive board members in Germany has become a highly controversial topic since Vodafone's hostile takeover of Mannesmann in 2000 and it is again in the spotlight since the outbreak of the financial crisis of 2009. Based on unique panel data evidence of the 500 largest firms in Germany in the period 1977-2009 we test two prominent hypotheses in the literature on executive pay: the manager power hypothesis and the efficient pay hypothesis. We find support for the manager power hypothesis for Germany as executives tend to be rewarded when the sector is doing well rather than the firm they work for. We reject, however, the efficient pay hypothesis as CEO pay and the demand for managers increases in Germany in difficult times when the typical firm size shrinks. We find further that domestic and global competition for managers has contributed to the rise in executive pay in Germany. Lastly, we show that CEOs in the banking sector are provided with incentives for performance and that the great recession of 2009 acted as a disciplining devise on CEO pay in Germany.
    Keywords: F23 ; J3 ; M12 ; M52 ; ddc:330 ; executive compensation ; corporate governance ; Managervergütung ; Führungskräfte ; Macht ; Effizienzlohn ; Corporate Governance ; Schätzung ; Deutschland
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  • 45
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: This paper investigates immigrants' and natives' labour supply to the firm within a semi-structural approach based on a dynamic monopsony framework. Applying duration models to a large administrative employer-employee data set for Germany, we find that once accounting for unobserved worker heterogeneity immigrants supply labour less elastically to firms than natives. Under monopsonistic wage setting the estimated elasticity differential predicts a 4.7 log points wage penalty for immigrants thereby accounting for almost the entire unexplained native-immigrant wage differential of 2.9-5.9 log points. Our results imply that discriminating against immigrants is profitable rather than costly.
    Keywords: J42 ; J61 ; J71 ; ddc:330 ; monopsony ; native-immigrant wage differential ; discrimination ; Germany ; Lohndifferenzierung ; Migranten ; Bevölkerung ; Lohnbildung ; Monopson ; Arbeitsangebot ; Preiselastizität ; Schätzung ; Deutschland
    Language: English
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  • 46
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: Previous studies report a wide range of estimates for how female labor supply responds to childcare prices. We shed new light on this question using a reform that raised the prices of public daycare. Parents respond by reducing public daycare and increasing childcare at home. Parents also reduce informal childcare indicating that public daycare and informal childcare are complements. Female labor force participation declines and the response is strongest for single parents and low-income households. The short-run effects on cognitive and non-cognitive skills are mixed, but negative for girls. Spillover effects on older siblings suggest that the policy affects the whole household, not just targeted family members.
    Keywords: J13 ; J22 ; J18 ; ddc:330 ; childcare ; labor supply ; cognitive skills ; family policy ; Germany ; Kinderbetreuung ; Kosten ; Familienpolitik ; Wirkungsanalyse ; Weibliche Arbeitskräfte ; Arbeitsangebot ; Familie ; Kinder ; Kognition ; Deutschland
    Language: English
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  • 47
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: We estimate the effect of a shortening of unemployment benefit entitlements on unemployment duration. Previous studies on the same or related problems have not taken into account that the competing risks duration model is not identified and we shed first light on the question whether the non identification problem may preclude informative results. It turns out that the identification bounds for the parameters of interest are very wide in the absence of strong assumptions. We suggest an assumption on the dependence structure between risks which is milder than what conventional duration models assume. Under this assumption, the identification bounds are tighter and become informative for the direction of the treatment effect. We find evidence that the unemployed with higher pre-unemployment earnings are more likely to enter full-time employment and, in particular, subsidized self-employment.
    Keywords: C34 ; C41 ; J64 ; ddc:330 ; dependent censoring ; partial identification ; difference-in-differences ; unemployment duration ; unemployment benefits ; Arbeitslosenversicherung ; Arbeitslosigkeit ; Dauer ; Statistische Bestandsanalyse ; Schätzung ; Deutschland
    Language: English
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  • 48
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: We analyze the effects of the unprecedented rise in trade between Germany and the East - China and Eastern Europe - in the period 1988-2008 on German local labor markets. Using detailed administrative data, we exploit the cross-regional variation in initial industry structures and use trade flows of other high-income countries as instruments for regional import and export exposure. We find that the rise of the East in the world economy caused substantial job losses in German regions specialized in import-competing industries, both in manufacturing and beyond. Regions specialized in export-oriented industries, however, experienced even stronger employment gains and lower unemployment. In the aggregate, we estimate that this trade integration has caused some 493,000 additional jobs in the economy and contributed to retaining the manufacturing sector in Germany. We also conduct our analysis at the individual worker level, and find that trade had a stabilizing overall effect on employment relationships.
    Keywords: F16 ; J31 ; R11 ; ddc:330 ; international trade ; import competition ; export opportunities ; local labor markets ; employment ; China ; Eastern Europe ; Germany ; Außenwirtschaft ; Beschäftigungseffekt ; Import ; Internationaler Wettbewerb ; Exportinduziertes Wachstum ; Deutschland ; Internationale Wirtschaftsbeziehungen ; Osteuropa ; China
    Language: English
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  • 49
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: Increases in standard hours have been a contentious policy issue in Germany. Whilst this might directly lead to a substitution of workers by hours, there may also be a positive employment effect due to reduced costs. Moreover, the response of firms differs between firms which offer overtime and those which do not. For a panel of German plants (2001-2006), we analyse the effect of increased standard hours on employment. Using difference-in-difference methods we find that, consistent with theory, overtime plants showed a significant positive employment response, whilst for standard-time plants there is no difference at all between plants which increased standard hours and those which did not.
    Keywords: C23 ; J23 ; J81 ; ddc:330 ; working time ; employment ; plant-level data ; difference-in-differences ; Arbeitszeitgestaltung ; Überstunden ; Beschäftigungseffekt ; Deutschland
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  • 50
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: Using a random effects dynamic panel data model and the 2000-2008 waves of the German SOEP this paper shows that non-cognitive skills have a predictive power on unemployment transitions.
    Keywords: C33 ; J64 ; ddc:330 ; non-cognitive skills ; dynamic random effects model ; unemployment persistence ; Arbeitslosigkeit ; Dauer ; Kognition ; Schätzung ; Deutschland
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  • 51
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: Why are better educated and more risk-friendly persons more mobile across regions? To answer this question, we use micro data on internal migrants from the German Socio- Economic Panel (SOEP) 2000-2006 and merge this information with a unique proxy for region-pair-specific cultural distances across German regions constructed from historical local dialect patterns. Our findings indicate that risk-loving and skilled people are more mobile over longer distances because they are more willing to cross cultural boundaries and move to regions that are culturally different from their homes. Other types of distance-related migration costs cannot explain the lower distance sensitivity of educated and risk-loving individuals.
    Keywords: J61 ; R23 ; D81 ; ddc:330 ; migration ; culture ; distance ; human capital ; risk attitudes ; Binnenwanderung ; Risikofreude ; Bildungsniveau ; Kulturelle Identität ; Entfernung ; Deutschland
    Language: English
    Type: doc-type:workingPaper
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  • 52
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    Unknown
    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: This paper offers a first empirical investigation of how labor taxation (income and payroll taxes) affects individuals' well-being. For identification, we exploit exogenous variation in tax rules over time and across demographic groups using 26 years of German panel data. We find that the tax effect on subjective well-being is significant and positive when controlling for income net of taxes. This interesting result is robust to numerous specification checks. It is consistent with several possible channels through which taxes affect welfare including public goods, insurance, redistributive taste and tax morale.
    Keywords: H21 ; H41 ; I38 ; ddc:330 ; subjective well-being ; taxation ; public goods ; Lohnsteuer ; Einkommensteuer ; Zufriedenheit ; Steuermoral ; Deutschland
    Language: English
    Type: doc-type:workingPaper
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  • 53
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: A central assumption of the canonical cheap talk literature is that people misreport their private information if this is to their material benefit. Recent evidence from laboratory experiments with student subjects suggests, however, that while many people do report the payoff-maximizing outcome, some report their private information truthfully or at least do not lie maximally. We measure truth-telling outside the laboratory by calling a representative sample of the German population at home. In our setup, participants have a strong monetary incentive to misreport, misreporting cannot be detected, and reputational concerns are negligible. Yet, we find that aggregate reporting behavior closely follows the expected truthful distribution. Our results underline the importance of lying costs and raise questions regarding the influence of the decision-making environment and the elicitation mode on reporting behavior.