What could all the money do?
27 January 2015
Publically sponsored further trainings for the unemployed are an important measure of active labour market policies (ALMP) in Germany. Current discussions within this context also focus on the willingness to participate, which is an important prerequisite for the success of the programs. Financial incentives may foster both participation and successful completion, thereby reducing opportunity costs of these measures. We investigate the question what factors determine the motivation to participate by conducting a CATI survey among around 4.000 unemployed persons from the unemployment insurance system (Social Code III) and the means-tested basic income support system for needy recipients (Social Code II). We use a factorial survey - also known as vignette analysis - in combination with administrative data of the Federal Employment Agency (FEA), the latter providing detailed information about the individual labour market history.
IAB-Discussion Paper 4/2015
Exports, agglomeration and workforce diversity
21 January 2015
In this paper, the authors ask whether German firms (i. e., establishments) benefit from localization and urbanization externalities and face higher export proportions. They also control for a variety of establishment characteristics and workforce diversity. For this purpose, a comprehensive German data set that combines survey data and administrative data is used.
IAB-Discussion Paper 3/2015
Revisiting German labour market reform effects
20 January 2015
There is an ongoing discussion that centres on the German labour market reforms (2003-2005) and the role of these reforms in boosting the German economy. Considering that one of the main objectives of the reforms was to improve the matching process on the labour market, the author uses rich, high-frequency, and recent administrative panel data to present new details regarding the development of job-matching performance before and after the reform years.
IAB-Discussion Paper 2/2015
The effect of hiring subsidies on regular wages
09 January 2015
What happens to the wages of regular workers in establishments subsidized with hiring subsidies? Does hiring programme participants result in windfalls that are distributed among regular workers? Do these reduce their wage demands to avoid being substituted by subsidized workers? Using linked employer-employee data from Germany, I estimate the effects of subsidizing an establishment on regular workers' wages using spell fixed effects regression. I find that hiring subsidy schemes do increase the daily wages of regular workers by up to almost one per cent in the manufacturing sector. These effects are limited to large establishments and abovemedian local unemployment rates.
IAB-Discussion Paper 1/2015
Journal for Labour Market Research 4/2014
07 January 2015
The impact of education on personality
22 December 2014
This paper investigates the short-term effects of a reduction in the length of high school on students’ personality traits using a school reform carried out at the state level in Germany as a quasi-natural experiment. Starting in 2001, academic-track high school (Gymnasium) was reduced from nine to eight years in most of Germany’s federal states, leaving the overall curriculum unchanged. This enabled students to obtain a university entrance qualification (Abitur ) after a total of only 12 rather than 13 years of schooling. We exploit the variation in the length of academic-track high school over time and across states to identify the effect of schooling on students’ Big Five personality traits and on their locus of control.
IAB-Discussion Paper 29/2014
Active labour-market policies in Germany
19 December 2014
Active labour-market policy (ALMP) not only affects the labour-market success of participants. Due to indirect effects, they might also affect the job perspectives of non-participants. Hence, even if ALMP programmes have a positive effect for the participants, this does not mean that ALMP improves the labour-market situation as a whole. Therefore, this paper deals with the question whether ALMP improves the matching-process between job-seekers and vacancies and thus increases the total number of outflows from unemployment into employment at the regional level. To answer this question, we use data for local employment offices of the German Federal Employment Agency for the time period 2006 to 2010 and focus on job-seekers subject to unemployment insurance.
IAB-Discussion Paper 28/2014
New Book: Privacy, Big Data, and the Public Good
19 December 2014
“Privacy, Big Data, and the Public Good: Frameworks for Engagement” is the title of a new book presented in New York in July. The book is edited by Julia Lane, Senior Managing Economist at American Institutes for Research, Victoria Stodden, Assistant Professor of Statistics at Columbia University, Helen Nissenbaum, Professor of Media, Culture and Communication and Computer Science at New York University, and Stefan Bender, Head of the Research Data Centre of the Federal Employment Agency at the IAB. The book provides an accessible summary of the important legal, economic, and statistical thoughts on the many privacy issues associated with the use of big data. It also contains practical suggestions for protecting privacy and confidentiality that can help to guide practitioners.
Further information about the book
Book review (free of charge)
Demography and unemployment in East Germany
01 December 2014
The authors analyze the relation between population aging and the decline of unemployment in East Germany for the years from 1996 to 2012. To this they scrutinize both a direct and an indirect effect of aging on unemployment. The direct effect includes a decomposition of the East German unemployment rate into three components considering changes in the workforce’s age structure, labor market participation, and age-specific unemployment rates. Results show that changes in the age structure of the workforce counteracted unemployment decline since 2005. Spatial panel regressions on the small-scale regional level, however, point towards an indirect effect of aging on unemployment that works through the increasing competition for labor.
IAB-Discussion Paper 26/2014