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Inhaltsbereich: Institut für Arbeitsmarkt- und Berufsforschung

    Why digitisation affects some German federal states more than others

    30 July 2020

    A map of the Federal Republic of Germany with several glowing dotsThe number of jobs in a German federal state (Bundesland) which could be replaced by digital technologies largely depends on the sectoral and occupational structures within this region. In this article, selected occupational segments are analysed to show that the federal states differ greatly in this regard.

    The article can be found in our Magazine IAB-Forum

    Dismissal Protection and Long-term Sickness Absence – First Evidence from Germany

    23 July 2020

    This paper analyses the causal effects of weaker dismissal protection on the incidence of long-term sickness (> six weeks). We exploit a German policy change, which shifted the threshold exempting small establishments from dismissal protection from five to ten workers. Using administrative data, we find a significantly negative reform effect on transitions into long-term sickness in the second year after a worker has entered an establishment. This response is due to a behavioural, rather than a compositional effect and is particularly pronounced among medium-skilled males. Our results further indicate that the reform did not alter the probability of involuntary unemployment after sickness.

    IAB-Discussion Paper 22/2020

    The Spatial Decay of Human Capital Externalities – A Functional Regression Approach with Precise Geo-Referenced Data

    22 July 2020

    This paper analyzes human capital externalities from high-skilled workers by applying functional regression to precise geocoded register data. Functional regression enables us to describe the concentration of high-skilledworkers aroundworkplaces as continuous curves and to efficiently estimate a spillover function that depends on distance. Furthermore, our rich panel data allow us to address the sorting of workers and to disentangle human capital externalities from supply effects by using an extensive set of time-varying fixed effects.

    IAB-Discussion Paper 21/2020

    The Labor Market Impacts of Employer Consolidation: Evidence from Germany

    15 July 2020

    We use detailed administrative data to study how acquisitions — specifically the Acquisition of a plant by a firm with a similar plant in the same local labor market—aectworkers. Using an event study framework with a control group of workers at unaected plants, we find that acquisitions lead to employment losses for workers initially employed at the acquired (or “target”) firm, associated with labor force withdrawals by older female workers. At the same time we find evidence of a rise in wages for workers initially employed at targets and at the acquiring (or “buyer”) firm who remain with the combined enterprise, concentrated among lower-wage workers. We interpret these findings as suggesting that consolidations lead to a reduction in overall employment but a rise in rents per worker that lead to a pattern of losers and winners in the labor market.

    IAB-Discussion Paper 20/2020

    “Acceptance of social- and labor market programs and regulations”: Methodological report on the first survey wave

    14 July 2020

    The FIS-funded project “Acceptance of social- and labor market programs and regulations” asks citizens about their assessment of specific design alternatives for social and labor market policies in Germany. This report describes the design and the field organization of the first online survey conducted by the project. Furthermore, it presents a selectivity analysis of contact and participation probabilities as well as for consent to merge the survey data with administrative data.

    IAB-Forschungsbericht 7/2020

    What helps the “ka-boom”? Five elements of a sound economic stimulus programme for Germany

    09 July 2020

    A person stacking up coinsPolitical plans aimed at kick-starting national economies have been introduced in many countries worldwide. The German Bundestag and Bundesrat passed a Coronavirus Tax Relief Act on 29 June 2020 that involves the first key elements of a large scale recovery programme. It is designed to get the German economy out of the crisis “with a ka-boom” as Germany’s Finance Minister Olaf Scholz put it. Some thoughts on the Government’s programme by IAB Director Bernd Fitzenberger.

    The article can be found in our Magazine IAB-Forum

    Click the following link for more articles in the series: Series “COVID-19 Crisis: Consequences for the Labour Market”

    Short-time work in Europe: Rescue in the coronavirus crisis? An interview with IAB researcher Regina Konle-Seidl

    25 June 2020

    A person is holding a blue safety helmet unter the arm.The coronavirus pandemic is keeping the economy on edge. To overcome the crisis, 33 of 36 OECD countries are now using short-time working schemes. All are pursuing the same goal of avoiding redundancies and retaining jobs. While the objective is the same in all countries, each country nevertheless tries to balance out a high use of the instrument and low deadweight effects and abuse. In an interview, the IAB researcher Regina Konle-Seidl explains the most important differences, discusses the advantages and disadvantages of short-time work, draws lessons from the use of this instrument in earlier times of crisis, and depicts first developments of short-time work and unemployment figures.

    The article can be found in our Magazine IAB-Forum

    Click the following link for more articles in the series: Series “COVID-19 Crisis: Consequences for the Labour Market”

    See also: IAB-Forschungsbericht (IAB Research Report) 4/2020

    IAB sponsors two events at the Virtual EALE SOLE AASLE World Conference

    24 June 2020

    About 700 labour economists from all over the world will meet at the “5th EALE SOLE AASLE World Conference” on 25-27 June 2020. The virtual conference is jointly organised by the European Association of Labour Economists (EALE), the Society of Labor Economists (SOLE) and the Asian and Australasian Society of Labour Economics (AASLE).

    The international conference offers two IAB-sponsored events: a Plenary Lecture by James Heckman (University of Chicago) and a Panel on “COVID-19 and the Female Labor Market”, hosted by Marianne Bertrand (University of Chicago Booth School of Business), featuring Michele Tertilt (University of Mannheim), Lena Hensvik, (Uppsala University) and Teodora Boneva (University of Zurich).

    EALE SOLE AASLE World Conference 2020

    What do we know about the employment of refugees in Germany? Answers to some frequently asked questions.

    18 June 2020

    Two workers wearing orange vests

    In 2015, the highest number of refugees arrived in Germany since the end of the Second World War. The overall number of refugees in Germany increased by 1.2 million people until the end of 2018. A recent analysis implies faster labour market integration of refugees who arrived in Germany between 2013 to 2016 than was the case for refugees from previous years. The results show that the employment rate increases with the duration of stay. These figures are an important indicator for the integration of refugees into the labour market and have therefore been widely discussed in Germany. In this interview, the authors Herbert Brücker and Yuliya Kosyakova answer key questions about the study, which was co-authored with Eric Schuß.

    The article can be found in our Magazine IAB-Forum

    Short-time Work in Europe: Rescue in the Current COVID-19 Crisis?

    16 June 2020

    More countries than ever are using short-time work as a labour market policy instrument to secure employment and limit the social costs of the current COVID-19 Crisis. Highlighting the economic rationality of short-time work the report classifies European short-time work programmes into different clusters and describes significant changes in the programme design since March 2020. It further discusses possible effects against the background of empirical findings on short-time work from past times of crisis.

    IAB-Forschungsbericht 4/2020

    Is there a Wage Curve with Regional Real Wages?

    09 June 2020

    Do wages react to regional unemployment, as proposed by the theory behind the regional wage curve, if regional price differences are taken into account? This paper applies regional price indexes to assess the wage curve, whereas in the literature only nominal wages are used for wage curve regressions. In order to test the impact of regional prices on the wage curve we apply a variety of methodological approaches. With individual data from the US Census and the Polish Labor Force Survey we find a wage curve. However, in both countries, the local unemployment elasticity and spatial spillovers decrease significantly once regional price deflators are applied.

    IAB-Discussion Paper 17/2020

    The world after the coronavirus crisis – more supportive, more digital, more sustainable?

    28 May 2020

    A question mark on a blackboard with arrows pointing away from it

    In times of coronavirus, politics is relying on scientific evidence more than ever. At the same time, the crisis offers the opportunity for a more supportive and more sustainable social and economic model – if we learn the right lessons. Some thoughts on this subject by IAB Vice Director Ulrich Walwei.

    The article can be found in our Magazine IAB-Forum

    Click the following link for more articles in the series: Series “COVID-19 Crisis: Consequences for the Labour Market”

    The Unemployment Impact of the COVID-19 Shutdown Measures in Germany

    27 May 2020

    This paper evaluates the short-term labour market impact of the COVID-19 shutdown measures in Germany. We take the closure of economic sectors such as restaurants and retail as a treatment, which enables difference-in-difference estimation. Additionally considering input-output linkages between the sectors, we find that 60 percent of the considerably increased inflows from employment into unemployment in April 2020 were due to the shutdown measures. In a second approach, we make use of the fact that sector closures and curfews were implemented at different times by the German state governments. In a regional regression setup based on treatment intensity,we find that the hiring margin accounted for additional 82 percent of the unemployment effect coming from the separations margin. In sum, the shutdown measures increased unemployment in the short run by 117,000 persons.

    IAB-Discussion Paper 16/2020

    Recruitment Policies, Job-Filling Rates and Matching Efficiency

    25 May 2020

    Recruitment behavior is important for thematching process in the labormarket. Using unique linked survey-administrative data, we explore the relationships between hiring and recruitment policies. Faster hiring goes along with higher search effort, lower hiring standards and more generous wages. To analyze the mechanisms behind these patterns, we develop a directed search model in which firms use different recruitment margins in response to productivity shocks. The calibrated model points to an important role of hiring standards for matching efficiency and for the impact of labor market policy, whereas search effort andwage policies play only a minor role.

    IAB-Discussion Paper 15/2020

    Persistence of commuting habits: Context effects in Germany

    20 May 2020

    Based on the geo-referenced data, I analyse the commuting behaviour of employees in Germany. With the help of a behavioural economic approach, which is based on the investigation of Simonsohn (2006) for the US, I can show that it is not only the wage and the individual heterogeneity that shape commuting decisions. Instead, the commuting behaviour depends on the context individuals observe in the past. In particular, I demonstrate that the commuting behaviour is influenced by past-observed commutes: Worker choose longer commuting times in a region they just moved to, the longer the average commute was in the region they moved away. This effect applies especially for older employees, but is the same for men and women.

    IAB-Discussion Paper 14/2020

    School closings during the COVID-19 pandemic: findings from German high school students

    15 May 2020

    The inside of an empty classroom

    School closings are a core policy to slow down the spread of the COVID-19 pandemic all over the world. In Germany, all schools were closed within a few days after 13 March 2020. As in other countries, Germany currently observes a countrywide, growing debate regarding the reopening of schools. Part of that debate focuses on the graduation exams at German high schools (upper secondary track of the German “Gymnasium”), which are due within the next few weeks. Although schools support their students by providing learning material on a regular basis, students in their final year of school spend limited time on school-related activities. At the same time, students worry about their academic performance and their future occupational careers.

    The article can be found in our Magazine IAB-Forum

    Click the following link for more articles in the series: Series “COVID-19 Crisis: Consequences for the Labour Market”

    “Trust is the glue that holds it all together.” An interview with the teleworking expert at the International Labour Organization Jon C. Messenger

    07 May 2020

    Woman working from home

    Since COVID-19 runs rampant, many employees have withdrawn to their home for work in order to help contain the virus. Teleworking enables them to fulfil work duties, while avoiding personal contact with colleagues. For some, teleworking has been a common situation on a part-time or an occasional basis for years. However, working full-time in a home office poses a different challenge. Others are breaking new ground with telework. Jon C. Messenger, Team Leader of the Working Conditions Group at the International Labour Office (ILO) in Geneva, presents his research results on effective teleworking strategies, shows the risks of the current development, and promotes the European Framework Agreement on Telework.

    The article can be found in our Magazine IAB-Forum.

    Evidence on job search models from a survey of unemployed workers in Germany

    06 May 2020

    The job finding rate of Unemployment Insurance (UI) recipients declines in the initial months of unemployment and then exhibits a spike at the benefit exhaustion point. A range of theoretical explanations have been proposed, but those are hard to disentangle using data on job finding alone. To better understand the underlying mechanisms, we conducted a large text-messa ge-based survey of unemployed workers in Germany.

    IAB-Discussion Paper 13/2020

    German Exports to the UK: declining since the Brexit referendum in 2016

    15 April 2020

    Trucks molded from plasticine and the word BrexitThe rules defining trade between Germany and the United Kingdom (UK) have not changed despite Brexit. Nevertheless, there is a clear downward trend in German exports of goods to the UK since the referendum in June 2016. The strongest reductions are visible in the motor vehicle and pharmaceutical industries. In contrast, German exports to its other main export destinations and to the world as a whole have been on the rise for the same period up until the COVID-19 pandemic.

    The article can be found in our Magazine IAB-Forum.

    Do parents’ flexible working hours affect fathers’ contribution to domestic work? Evidence from a factorial survey

    14 April 2020

    This paper investigates the impact of fathers’ flexible working hours on their willingness to contribute to domestic work. We first hypothesize that fathers will contribute more if they have the possibility to work flexible hours. Second, fathers are assumed to contribute less if their female partners have the possibility to work flexible hours. We test our hypotheses using data from a vignette study, where fathers evaluate hypothetical job offers to their non-employed partner with regard to the contribution to domestic work they are willing to offer if their partner accepts the job. We find that fathers’ flexible hours increase their willingness to contribute to childcare but not to household work, partially supporting hypothesis one. Regarding hypothesis two, we find no effects of the female partner’s flexible working hours on fathers’ contribution to childcare or household work. We conclude our paper with some policy implications.

    IAB-Discussion Paper 12/2020

    Measurement error in minimum wage evaluations using survey data

    06 April 2020

    We assess the role of measurement error in minimum wage evaluations when the treatment variable – the bite – is inferred from a survey wage distribution. We conduct Monte Carlo experiments on both simulated and empirical distributions of measurement error derived from a record linkage of survey wages and administrative data. On the individual-level treatment effects are downward biased by more than 30 percent. Aggregation of the treatment information at the household, firm or region level does not fully alleviate the bias. In fact, the magnitude and direction of the bias depend on the size of the aggregation units and the allocation of treated individuals to such units. In cases of a strongly segregated allocation, measurement error can cause upward biased treatment effects. Besides aggregation, we discuss two possible remedies: the use of a continuous treatment variable and dropping observations close to the minimum wage threshold.

    IAB-Discussion Paper 11/2020

    Effects of population changes on the labour market in Germany

    01 April 2020

    Bild einer Menschenmenge

    Until now, high migration and participation have compensated for the demographic decline of the labour force potential in Germany. A set of scenarios for the future development leads to only one conclusion, however: The economic and social consequences of the demographic change will become more urgent in the near future – and must be tackled from different directions.

    The article can be found in our Magazine IAB-Forum.

    Decomposing the Large Firm Wage Premium in Germany

    24 March 2020

    We use an extensive, matched employer-employee dataset to analyze the employer-size wage relation and its contribution to wage inequality in Germany. Applying models with additive fixed eects for workers and establishments, we document that the large firm wage premium, which has risen over 25 years, has only recently started to decrease. Our estimates show that the recent decline is due to a decrease in the variation of establishment-specific wage premiums both across establishment size groups and within. This decline together with decreasing worker segregation at small firms account for an overall reversal in the trend of increasing wage dispersion.

    IAB-Discussion Paper 10/2020

    Parental leave reform and long-run earnings of mothers

    16 March 2020

    Paid parental leave schemes have been shown to increase women’s employment rates but decrease their wages in case of extended leave durations. In view of these potential trade-offs, many countries are discussing the optimal design of parental leave policies. We analyze the impact of a major parental leave reform on mothers’ long-term earnings.

    IAB-Discussion Paper 9/2020

    Labor in the Boardroom

    11 March 2020

    We estimate the effects of a mandate allocating a third of corporate board seats to workers (shared governance). We study a reform in Germany that abruptly abolished this mandate for new firm cohorts but locked it in for incumbents. Rejecting the canonical hold-up prediction – that increasing labor’s power reduces owners’ investment incentives – we find positive effects on capital formation. Shared governance does not measurably raise wages or rent sharing, nor does it lower profitability or debt capacity. It lowers outsourcing. The evidence is consistent with richer models of industrial relations whereby shared governance institutionalizes communication and repeated interactions between labor and capital.

    IAB-Discussion Paper 8/2020

    Family-friendly organizational arrangements – anything but “a fuss” (over nothing)!

    10 March 2020

    Eine Frau und ein Mann mit einer Wippe auf der Figuren einer Familie und die Worte Life und Work stehen

    In Germany, more and more companies are offering measures to improve the reconciliation of family and work. This carries benefits for companies and employees alike, because family-friendly measures help women to return to their previous employer faster and more frequently.

    The article can be found in our Magazine IAB-Forum.

    Robots Worldwide: The Impact of Automation on Employment and Trade

    09 March 2020

    The impact of robots on employment and trade is a highly discussed topic in the academic and public debates. Particularly, there are concerns that automation may threat jobs in emerging countries given the erosion of the labour cost advantage. We provide evidence on the effects of robots on worldwide employment, including emerging economies.

    IAB-Discussion Paper 7/2020

    Not coming in today - Firm productivity differentials and the epidemiology of the flu

    26 February 2020

    With more than four million cases in Germany every year, influenza and acute upper respiratory tract infectious diseases (henceforthURTI) exhibit the highest number of reported doctor consultations. Although the direct treatment costs for URTI are comparably low, the indirect economic costs, due to work absences and productivity impairments of sick workers who remain at work (presentism), are far more compelling.

    IAB-Discussion Paper 6/2020

    Professor Bernd Fitzenberger will be honoured with the German Economy Award

    20 February 2020

    Prof. Bernd Fitzenberger, Ph.D.The IAB Director Bernd Fitzenberger will be honoured with the German Economy Award of the Joachim Herz Foundation. The labour market economist will receive an award worth EUR 150,000 for the best research publication.

    Read more

    Prof. Dr. Ulrich Walwei has been appointed a member of the “Council of the Working World“

    20 February 2020

    Portrait von Dr. Ulrich WalweiIn January 2020, Hubertus Heil, Federal Minister for Labour and Social Affairs, introduced the independent “Council of the Working World”, whose task will be to regularly provide politics, businesses and the general public with information and counselling regarding the change in the working world. The IAB Vice Director Professor Ulrich Walwei is also part of the Council consisting of eleven representatives of the business and scientific community.

    Does the estimation of the propensity score by machine learning improve matching estimation? The case of Germany’s programmes for long term unemployed

    12 February 2020

    Matching-type estimators using the propensity score are the major workhorse in active labour market policy evaluation. This work investigates if machine learning algorithms for estimating the propensity score lead to more credible estimation of average treatment effects on the treated using a radius matching framework.

    IAB-Discussion Paper 5/2020

    Firm Productivity, Wages, and Sorting

    05 February 2020

    Increasing wage inequality is associated with changes in the degree of labor market sorting,
    i.e. the allocation of workers to firms. To measure sorting, we propose a new method
    which disentangles the respective contributions of worker and firm heterogeneity to wage
    inequality. Inspired by sorting theory, we infer firm productivity from estimating firm-level
    production functions, taking into account that worker ability and firm productivity may interact
    at the match level.

    IAB-Discussion Paper 4/2020

    Call for Applications: 7 docotoral scholarships in GradAB programme

    27 January 2020

    The Institute for Employment Research (IAB) and the School of Business and Economics of the University of Erlangen-Nuremberg (FAU) offer a joint doctoral programme in labour market research (GradAB), which prepares graduates for a career in academics and in policy consulting. We invite applications for seven doctoral scholarships beginning October 1st, 2020.

    Call for Applications

    Application Procedure

    The Effect of Social Networks on Migrants' Labor Market Integration: A Natural Experiment

    20 January 2020

    Empirically identifying the causal effect of social networks on migrants’ economic prospects is a challenging task due to the non-random residential sorting of migrants into locations with greater opportunities for (previous) connections. Our study addresses this selection-bias issue by using a unique natural-experimental dataset of refugees and other migrants that were exogenously allocated to their first place of residence by German authorities. The empirical results reveal a positive causal effect of social networks on migrants’ transition rate to the first job, but only if the networks are mobilized for the job search.

    IAB-Discussion Paper 3/2020

    Career paths of PhD graduates in eastern and western Germany: Same qualification, same labor market Outcomes?

    15 January 2020

    This paper investigates the extent to which the returns to gaining a PhD degree depend upon the region of birth, the region where the degree was earned, and the place of work. Eastern Germany serves as an interesting showcase in light of the ongoing debate surrounding the underrepresen-tation of eastern Germans in top positions in Germany. We examine the career paths of eastern and western German PhD graduates who completed their dissertations between 1995 and 2010. We estimate the returns with regard to obtaining a job suited to their skill level and with high wages.

    IAB-Discussion Paper 1/2020

    Season's Greetings

    23 December 2019

    IAB-Festtagsprognose in Form eines TannenbaumsThis year is drawing to a close, and we are looking forward to the new start in the New Year 2020. We wish you and your loved ones an enjoyable festive season and a happy and successful New Year.

    Occupational routine-intensity and the costs of job loss: evidence from mass layoffs

    23 December 2019

    This paper analyses how differences in the degree of occupational routine-intensity affect the costs of job loss. We use worker-level data on mass layoffs in Germany between 1980 and 2010 and provide causal evidence that workers who used to be employed in more routine-intensive occupations suffer larger and more persistent earnings losses after the mass layoff. Furthermore, we are able to show that, at least initially, earnings losses are primarily due to a reduction in the number of days in employment, suggesting that routine-intensive workers face considerable frictions in the adjustment to job loss. Conditional on finding a new job, routine-intensive workers are more likely to change their occupations but end up systematically in the lower end of their new occupation’s wage distribution.

    IAB-Discussion Paper 25/2019

    The sources behind the gender wage gap of university graduates

    19 December 2019

    Zwei Figuren und Münzen auf einer WippeFor every euro a man earned per hour in Germany in 2018, a woman earned on average only 0.79 euros. This amounts to a gender wage gap of 21 percent, which is even greater among high-skilled individuals. In order to develop policies to reduce the gender wage gap, one should understand the sources behind this phenomenon. This particularly pertains to the early stages of the career when graduates make long-lasting occupation-related decisions.

    The article can be found in our Magazine IAB-Forum.

    Reforming the German basic income system in international perspective: yes to new avenues, no to a fundamental change

    12 December 2019

    Four Hands hold a note with the words "basic needs"In Germany, politicians and the public have been debating for quite some time now whether the means-tested basic income scheme, colloquially referred to as Hartz IV, should be fundamentally reformed or even replaced by an unconditional basic income. Discussions, pilot projects and reform-attempts in this area can also be observed in other countries. A look beyond national borders is therefore highly instructive for the German – and international – reform debate.

    The article can be found in our Magazine IAB-Forum.

    The Quality-Weighted Matching Function: Did the German Labour Market Reforms Trade of Efficiency against Job Quality?

    04 December 2019
    In this paper we evaluate the quantity-quality trade-off on the labor market by estimating an augmented matching function weighting the matches by quality measures. We use the approach to evaluate the German labor market reforms conducted between 2003 and 2005. Indeed, we find a significant quantity-quality trade-off. However, even after controlling for job quality, a good half of the positive effect of reforms on the matching efficiency remains.

    IAB-Discussion Paper 24/2019

    Scarcity drives employment growth

    21 November 2019

    Businessman looks at red figure through magnifying glassWhat is driving Germany’s continued upturn in employment? It has been a while since Hartz reforms and business cycles have lost much of their importance for the labour market. Decisive for the upward trend is a self-reinforcing effect: in view of the increasing scarcity of labour, employers are securing valuable manpower for themselves.

    The article can be found in our Magazine IAB-Forum.

    Do informational nudges alter firms’ hiring behavior of older Workers?

    12 November 2019

    This paper analyses a local marketing campaign in Germany that provided information about unproven age-related stereotypes and the value of older workers. The campaign was designed to increase the hiring rate of older workers. Using comprehensive register data, we find that the information provided by the campaign (via banners, interviews, job fairs and information brochures) did change firms’ employment behavior. The cheap and mild intervention increased the employment rate of older workers on average by 3 percentage points. This increase, however, is attributable to an increase in job stability rather than to an increase in the hiring of older workers.

    IAB-Discussion Paper 23/2019

    Informing employees in small and medium sized firms about training: results of a randomized field Experiment

    07 November 2019
    We analyze a labor market program that subsidizes skill-upgrading occupational training for workers employed in small and medium sized enterprises. The program covers a substantial share of training costs. Nonetheless, take-up has been low. In an experimental setup, we mailed 10,000 brochures to potentially eligible workers, informing them about the importance of skill-upgrading occupational training in general and about the subsidy program in particular. Using combined survey and register data, we analyze the impact of receiving the brochure on workers’ knowledge of the program, on take-up of subsidized and unsubsidized training, and on job characteristics. 
    IAB-Discussion Paper 22/2019

    “Exclusion from steady employment is widespread in Denmark, Finland, and Germany.” An interview with Regina Konle-Seidl

    09 October 2019

    German, Danish, and Fnnish flagRegina Konle-Seidl explains in this video interview the concept of chronic unemployment. In many European countries considerable segments of the labour force seem to be excluded from steady employment on the regular labour market. The concept of chronic unemployment aims at capturing this exclusion and goes far beyond the common indicator “long-term unemployment”. A comparison of both indicators across Denmark, Finland, and Germany reveals astonishing differences. Konle-Seidl explains these differences and gives political recommendations how to reduce high rates of chronic unemployment.

    The article can be found in our Magazine IAB-Forum.

    The urban wage premium in imperfect labour markets

    07 October 2019
    Using administrative data for West Germany, this paper investigates whether part of the urban wage premium stems from fierce competition in thick labour markets. We first establish that employers possess less wage-setting power in denser markets. Local differences in wage-setting power predict 1.8–2.1 percent higher wages from a 100 log points increase in population density. We further document that the observed urban wage premium from such an increase drops by 1.5–1.9pp once conditioning on local search frictions. Our results therefore suggest that a substantial part of the urban wage premium roots in differential imperfections across local labour markets.

    IAB-Discussion Paper 21/2019

    Bernd Fitzenberger has been the new Director of the Institute for Employment Research since 01 September

    30 September 2019

    Prof. Bernd Fitzenberger, Ph.D.Economist Bernd Fitzenberger has been the new Director of the Institute for Employment Research (IAB) in Nuremberg since 01 September. Mr Fitzenberger is the successor of Joachim Möller, who retired after eleven years in office at the end of September 2018. Economist Ulrich Walwei remains the Vice Director. He has been the Deputy Head of the IAB since June 2002 and acted as the Interim Director after Joachim Möller's retirement.

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    Which Factors are behind Germany's Labour Market Upswing?

    27 September 2019

    The strong and sustained labour market upswing in Germany is widely recognized. In a developing literature, various relevant studies highlight different specific reasons. The underlying study, instead, simultaneously considers a broad set of factors in a unified methodological framework and systematically weighs the candidate reasons for the labour market upswing against each other on an empirical basis. The candidates are: shocks on (de)regulation of employment or job creation intensity, the efficiency of the matching process, wage determination, the separation propensity,the size of the labour force, technology, business cycle and working time. We develop a structural macroeconometric framework that leaves as many of the systematic interlinkages as possible for empirical determination while operating with a minimal set of restrictions in order to identify economically meaningful shocks.

    IAB-Discussion Paper 20/2019

    Cochran-Hansen-Prize 2019 honors paper led by Professor Joseph Sakshaug

    26 September 2019

    Professor Joseph SakshaugProfessor Joseph Sakshaug (IAB and University of Mannheim) is the lead author of the winning paper of the Cochran-Hansen-Prize of the International Association of Survey Statisticians awarded to co-author Dr. Diego Andres Perez Ruiz (University of Manchester). The prize, awarded to a young statistician from a developing or transition country, was given to Mexican researcher Dr. Perez-Ruiz for his contributions to the paper “Augmenting Probability-Based Surveys with Nonprobability Survey Information: a Bayesian Approach.” The other co-authors include Dr. Arkadiusz Wiśniowski (University of Manchester) and Prof. Dr. Annelies Blom (University of Manheim).

    More information...

    Working time accounts in the public- and private sector: flexible working hours are becoming increasingly important

    11 September 2019

    Close-up of an alarm clock on reflective deskMore and more companies and administrations offer their employees working time accounts. Between 1999 and 2016, the proportion of companies using this instrument has almost doubled. Above all, models that enable a short-term adjustment of work-input are particularly widespread. By contrast, long-term accounts, which facilitate longer leave periods including family leave, remain the exception.

    The article can be found in our Magazine IAB-Forum.

    Heterogeneity in Marginal Returns to Language Training of Immigrants

    09 September 2019

    We estimate the effect of language training on subsequent employment and wages of immigrants under essential heterogeneity. The identifying variation is based on regional differences in language training availability that we use to instrument endogenous participation. Estimating marginal treatment effects along the distribution of observables and unobservables that drive individual participation decisions, we find that immigrants with higher gains are more likely to select into language training than immigrants with lower gains.

    IAB-Discussion Paper 19/2019

    Sequential versus Non-Sequential Search among German Employers – Evidence from a Job Vacancy Survey

    19 August 2019

    In this note, we provide evidence on the extent and determinants of sequential versus non-sequential search among German employers. Using unique representative data on employers’ recruitment behavior, we exploit direct information on whether employers first formed a pool of applicants from which they chose the most suitable candidate (Non- Sequential Search), or whether they hired the first suitable applicant (Sequential Search). We show that non-sequential search is the predominant search strategy, accounting for about 75 per cent of all successful hirings.

    IAB-Discussion Paper 18/2019

    Marginal part-time employment in Germany: Live or let die?

    08 August 2019

    Miniatur-Menschen auf Bausteinen mit Schriftszug "Minijob"Marginal employment, known as mini-job, is a two-edged sword. For many mini-jobber it has not been worthwhile to work longer hours up to now. This is an avoidable obstacle for securing a sustainable supply of skilled workers. At the same time, neither a continuation of the status quo nor a complete abolition of marginal employment is a proper solution. A well-thought-out reform completed in reasonable steps aiming at the improvement of the overall situation of employees, enterprises and the state budget is feasible.

    The article can be found in our Magazine IAB-Forum.

    Do Minimum Wages Improve Self-Rated Health? Evidence from a Natural Experiment

    07 August 2019

    In this paper, we analyze whether the introduction of the general minimum wage in Germany in 2015 had an effect on workers’ self-rated health. To study this question, we use survey-data linked to administrative employment records and apply difference-in-difference regressions combined with propensity score matching. This approach enables us to control for a vast set of possibly confounding variables. We find on average significant improvements of self-rated health for individuals who are affected by the reform. Our results indicate, that a significant reduction of weekly working hours potentially drives this result.

    IAB-Discussion Paper 17/2019

    Do social networks mitigate stigma effects from long-term unemployment?

    06 August 2019

    Using data from the German Job Vacancy Survey from 2016 and 2018, which is a representative paper and pencil survey on establishments in Germany, I investigate how employers judge the work related skills of long-term unemployed and whether this group has higher chances of being hired when an employer uses his or her social contacts to find candidates. Apart from a large number of establishment-specific characteristics, the survey contains information on the recruiting process with regard to long-term unemployed. Establishments are asked whether they had applications from these persons, whether they invited them for an interview and whether they finally employed long-term unemployed individuals. For all three steps of the recruitment process, it is possible to identify employers that recruited long-term unemployed with or without recommendations.

    IAB-Discussion Paper 16/2019

    Heterogeneous displacement effects of migrant labor supply - quasi-experimental evidence from Germany

    05 August 2019

    In this paper the authors investigate the displacement effects on previous residents utilizing a quasi-experiment by a policy change that facilitated labor market access of asylum seekers.

    IAB-Discussion Paper 15/2019

    The gender wage gap in Europe: What can we learn from linked employer-employee data? A workshop report

    12 July 2019

    Frauen und Männer im Büro vor BildschirmenA recent IAB workshop on the gender wage gap in Europe stressed the importance of the workplace and the firm in explaining gender inequalities. The workshop presentations showed that linked employer-employee data of all types can help analysts and policy makers understand the mechanisms which lie behind these inequalities, giving insights that cannot be obtained from traditional surveys of individuals and households.

    The article can be found in our Magazine IAB-Forum.

    Say it like Goethe: Language learning facilities abroad and the self-selection of immigrants

    08 July 2019

    Immigration policy in most high-income countries is designed to promote qualified migration while maintaining high requirements on characteristics such as education and language skills. We rely on a standard self-selection model with heterogeneous migration costs to discuss the effect of access to language learning services in the country of origin on the skill composition of immigrants in Germany. Using individual-level survey data on immigrants from different cohorts over the period 2000–2014, combined with unique data on the presence of Goethe Institutes – a German association promoting German language and culture worldwide – in origin countries, the results of our empirical analysis show that the acquisition of the German language is fostered by the availability of language courses abroad.

    IAB-Discussion Paper 14/2019

    The IAB has once again been awarded the certificate for the “berufundfamilie” audit

    19 June 2019

    Zertifikat Audit „berufundfamilie“ 2019The IAB offers a wide range of family-friendly measures to promote balancing family and career – e. g., flexible working hours and break times, various forms of part-time work during parental leave, or teleworking.

    In 2009, the IAB was certified as a family-friendly institution within the framework of the “berufundfamilie” audit. After successful completion of the dialogue procedure in October 2018, the long-standing commitment to personnel policy respecting family needs and different phases of life was re-certified.

    You can find more Information here.





    Digital Social Security: How does it work? An interview with Professor Enzo Weber

    13 June 2019

    Eine junge Frau arbeitet an einem LaptopProfessor Enzo Weber talks in this video interview about his concept of Digital Social Security. He describes the cornerstones of Digital Social Security, how a digital approach, an international concept and national social security can be combined, and what practical first steps need to be undertaken to put this approach into practice.

    The full interview can be found in our magazine IAB-Forum.

    Protectionism and the argument for creating jobs at home

    23 May 2019

    Containerschiff im HafenIn the political debate, trade protectionism has been frequently associated with keeping and increasing the number of jobs at home. The argument is, however, not so simple, since international trade in products and services is organised within global value chains. Goods that are further processed and not used for final consumption play a key role in international commerce. Increasing trade barriers for those so-called “intermediates” can be particularly costly for an economy and lead to job losses in connected industries.

    The article can be found in our Magazine IAB-Forum

    The IAB-INCHER project of earned doctorates (IIPED): A supervised machine learning approach to identify doctorate recipients in the German integrated employment biography data.

    23 May 2019

    Only scarce information is available on doctorate recipients’ career outcomes in Germany. With the current information base, graduate students cannot make an informed decision whether to start a doctorate. Administrative labour market data could provide the necessary information, is however incomplete in this respect. In this paper, we describe the record linkage of two datasets to close this information gap: data on doctorate recipients collected in the catalogue of the German National Library (DNB), and the German labour market biographies (IEB) from the German Institute of Employment Research.

    IAB-Discussion Paper 13/2019

    GDP-Employment Decoupling and the Slow-down of Productivity Growth in Germany

    08 May 2019

    This paper investigates the time-varying relationship between German output and employment growth, in particular their decoupling in recent years. The authors estimate a correlated unobserved components model that allows for persistent and cyclical time variation in the employment-GDP linkage as well as an additional employment component beyond the one linked to GDP.

    IAB-Discussion Paper 12/2019

    Why do women earn more than men in some regions? Explaining regional differences in the gender pay gap in Germany

    07 May 2019

    This paper provides first-time evidence on the magnitude and determinants of regional differences in the gender pay gap (GPG) in Germany. Using a comprehensive data set of all full-time employees, the authors conduct Oaxaca-Blinder decompositions for Germany and its regions to explain the regional variation of the GPG with theory-based individual, job-related and regional characteristics.

    IAB-Discussion Paper 11/2019

    Labour market integration of migrants in Austria, Germany, and Sweden. An interview with Regina Konle-Seidl

    30 April 2019

    Mature male supervisor talking with worker in metal industryRegina Konle-Seidl, researcher at the IAB in Nuremberg, compares in our video interview policies to facilitate labour market integration of migrants in Austria, Germany, and Sweden. She focusses on country strategies to adapt the asylum and integration system to the high numbers of new arrivals, gives special attention to the political discourse and the role of public opinion, and explains innovative approaches and gaps with respect to labour market integration of migrants.

    The full interview can be found in our Magazine IAB-Forum.

    Wages of migrant and native employees in Germany: new light on an old issue

    25 April 2019

    The German workforce is expected to decline in future and labour-oriented immigration should counteract labour shortages. Fair wages in Germany set incentives for foreigners to immigrate there. Therefore this paper aims to shed new light on the decomposition of the wage gap between foreign and native full-time employees.

    IAB-Discussion Paper 10/2019

    Magnitude, structure and dynamics of chronic unemployment in Denmark, Finland and Germany

    24 April 2019

    Individual unemployment spells are frequently interrupted by short casual employment, by participation in active labour market policy (ALMP) measures or by periods outside the labour force. Such episodes end unemployment spells but afterwards the person gets often unemployed again, and the conventional statistics do not capture the actual length of the individual problem of being without a “real” job in the longer run. To better grasp this problem of repeated unemployment we analyse unemployment trajectories of individuals with weak links to the labor market in the longer run. For this purpose, we introduce the concept of “chronic unemployment” (CU). Our empirical analysis applies unique comparable and very detailed longitudinal register data to study the CU problem in Denmark, Finland and Germany. We find that chronically unemployed make up about one third of all unemployed in all three countries.

    IAB-Discussion Paper 9/2019

    Electromobility 2035 Economic and labour market effects through the electrification of powertrains in passenger cars

    18 April 2019

    This study focuses on the economic effects of the phenomenon of the electrification of powertrains in passenger cars (e-mobility). The automotive industry is one of the leading sectors in Germany and the country is one of the world’s leading car producers. Therefore the economic impact could be extensive. Using the scenario technique, a number of assumptions have been made and integrated into the QINFORGE analytical tool.

    IAB-Discussion Paper 8/2019

    Does facilitated access to the health system improve asylum-seekers’ health outcomes? Evidence from a quasi-Experiment

    16 April 2019

    As long as their asylum application is not approved or their duration of stay does not exceed 15 months, asylum-seekers who require doctor visit have to claim it either by the local authority for foreigners or the responsible social assistance office in Germany. Since 2016 several Federal states and municipalities in Germany have launched the procedure to hand out electronic health cards (eHC) which allow immediate direct access to the health system for asylum-seekers. In this paper, we examine whether being eligible to the eHC as a result of the policy change has had an effect on the health outcomes of asylum-seekers in Germany.

    IAB-Discussion Paper 7/2019

    „We need legal migration to stabilise the Italian social security system“. An interview with Professor Tito Boeri

    12 April 2019

    Tito BoeriWith his pro-migration media statements, the Italian economics Professor Tito Boeri expresses his open dissent with the Italian government. He argues that Italy needs migration in order to secure the prosperity of the Italian society, the social standards, and the pension system. Tito Boeri was President of the Italian National Social Security Institute from March 2015 to February 2019 and is now professor at Bocconi University, Milan. In his interview with the IAB-Forum, Boeri explains the current situation and the future of the Italian social security system.

    The full interview can be found in our Magazine IAB-Forum.

    Benefit underreporting in survey data and its consequences for measuring non-take-up: new evidence from linked administrative and survey data

    02 April 2019

    The international literature studies non-take-up behavior of eligible populations to evaluate the effectiveness of government programs. A major challenge in this literature is the measurement error regarding benefit take-up. Measurement error is typically addressed by structural assumptions in the modeling framework. In our data, we observe both actual welfare receipt and respondents’ survey information on their take-up. This allows us to observe the measurement errors that other researchers must estimate. We describe survey misreporting and investigate how it biases the estimates of the magnitude and patterns of benefit take-up among eligible households. Our findings suggest that the extent of measurement error can be substantial. It varies with the characteristics of the misreporting population and is associated with the drivers of underreporting. This indicates that survey-based analyses of take-up behavior are likely subject to severe biases.

    IAB-Discussion Paper 6/2019

    “The labour market integration of refugees is working out much better than we expected.” An interview with Herbert Brücker and Yuliya Kosyakova

    25 March 2019

    Yuliya Kosyakova und Herbert Brücker im GesprächIn order to learn more about the situation of refugees in Germany, and how it develops, a representative longitudinal survey has been launched in 2016: the IAB-BAMF-SOEP Survey of Refugees. The study partners include the Institute for Employment Research (IAB), the Research Center of the Federal Office of Migrants and Refugees (BAMF-FZ) and the Socio-economic Panel (SOEP) at the German Institute for Economic Research (DIW Berlin). The results of the second survey wave from 2017 have now been published in a current IAB-Kurzbericht (short report). Herbert Brücker and Yuliya Kosyakova, senior researchers at the IAB, who co-authored the Kurzbericht are themselves surprised by some of the results, as they reveal in an interview with the IAB Forum editing team.

    The full article can be found in our magazine IAB-Forum.

    Age Diversity and Innovation: Do mixed teams of old and experienced and young and restless employees foster companies innovativeness?

    04 March 2019

    In Germany, the labour force is ageing rapidly. At the same time, age heterogeneity within companies is rising. The literature on diversity argues that heterogeneity can have a positive as well as a detrimental effect on team outputs. Our paper sheds light on the impact of age diversity on the likelihood of a company to create product or process innovations. Based on our analysis of the Linked Employer-Employee-Data from the Institute for Employment Research (IAB) over the 2009-2013 period, we focus on different indicators of age diversity within a company’s workforce (variety, separation and disparity).

    IAB-Discussion Paper 4/2019

    Hartz IV and the Decline of German Unemployment: A Macroeconomic Evaluation

    21 February 2019

    This paper proposes a new approach to evaluate the macroeconomic effects of the Hartz IV reform in Germany, which reduced the generosity of long-term unemployment benefits. We use a model with different unemployment durations, where the reform initiates both  a partial effect and an equilibrium effect. The relative importance of these two effects  and the size of the partial effect are estimated based on the IAB Job Vacancy Survey.

    IAB-Discussion Paper 3/2019

    Second wave of the IAB-BAMF-SOEP survey: Language skills and employment rate of refugees improving with time

    19 February 2019

    Refugees attending classesAsylum seekers migrating to Germany remains a hotly debated topic. The second wave of a longitudinal survey of refugees shows that their integration has progressed significantly, even though some refugees came to Germany in poor health with little formal education. Compared to the previous year ,refugees’ German skills have improved, as have their participation rates in the workforce, education, and training.

    IAB Brief Report (IAB-Kurzbericht) 3/2019

    Evaluation of the IAB: Labour Minister Heil sends his congratulations for excellent rating by the German Council of Science and Humanities

    12 February 2019

    Portrait Federal Labour Minister Hubertus Heil, © Foto: Susie KnollFederal Labour Minister Hubertus Heil congratulated the institute on its excellent rating by the German Council of Science and Humanities (Wissenschaftsrat), which recently conducted a comprehensive evaluation of the IAB and its work. The IAB, he said, was an indispensable labour market policy counselling institution for the Federal Employment Agency and the Federal Government. The minister’s statement in its entirety can be found below: more.

    Manager for download: Expectations versus reality

    11 February 2019
    Mann zeigt auf Kästchen mit Haken

    Digitisation will leave a strong mark on the working world of today, including leadership styles, structures, and cultures. Still, however, many companies and job-seeking managers stick to the old ways of thinking. But what kind of leadership does digitisation require in the first place? And how can companies prepare for the imminent changes?

    The full article can be found in our Magazine IAB-Forum.

    Another “Excellent” rating for the IAB

    06 February 2019

    The German Council of Science and Humanities, the most important advisory body for science policy of the German Federal Government, gives the Institute for Employment Research (IAB) yet another glowing reference. The Council’s evaluation of the IAB was published last week and stated that the overall quality of the research conducted by the IAB was excellent.

    Press release

    Early child care and maternal employment: empirical evidence from Germany

    14 January 2019

    This paper examines the effect of an expansion of subsidized early child care on maternal labor market outcomes. It contributes to the literature by analyzing, apart from the employment rate and agreed working hours, preferred working hours. Using the legal claim for subsidized child care introduced in Germany in August 2013 for children aged one to three years, I apply a semi-parametric difference-in-differences estimator to examine maternal labor market outcomes.

    IAB-Discussion Paper 2/2019

    The rise of online labour markets: freelancing and gig working via internet platforms

    20 December 2018

    Hands on a notebook and a graphicGUEST CONTRIBUTION Gig work apps’ food delivery drivers have become a familiar sight in many European cities. However, there is also a completely digital version of platform-mediated non-standard work. In online gig work, self-employed workers complete projects remotely for clients obtained through online labour platforms. Surveys suggest that similar proportions of European workers engage in online gig work and local gig work, yet the two differ significantly. The online gig economy is transnational and spans a full spectrum of skills, from data entry to software development. It offers an interesting view to the future of skills, social protection, and industrial relations in Europe.

    The full article can be found in our Magazine IAB-Forum.

    The Effect of Compulsory Service on Life Satisfaction and its Channels

    18 December 2018
    Compulsory military service is still a prominent feature of young people’s careers in many countries. We use the abolition of compulsory military and civil service for males in 2011 in Germany as a natural experiment to identify effects of institutionalized career disruptions on life satisfaction. Drawing on data from the SOEP, we apply a difference-in-differences design (comparing young males and females) to assess the causal effect of this reform on individual life satisfaction. Our results show a significant and robust positive effect of the abolition of compulsory service on young males’ life satisfaction. Furthermore, we provide empirical evidence that reductions in career disruptions, forgone earnings, uncertainty regarding the future, and forced labor contribute to this effect.

    IAB-Discussion Paper 24/2018

    Departing from the beaten track – trends of working in the digital transformation

    20 November 2018

    Young people holding smartphones and notebooks in their handsOur economy and society are facing major challenges in times of digital transformation, demographic change and increasing globalisation – developments which are increasingly gaining momentum. Everything is becoming more volatile, many things are changing at an incredible pace – this holds many opportunities but also risks. This will also significantly change the way we live and work in years to come. For this reason, it is essential for all of us to deal with developments in this area. Frequently, we ourselves are the drivers of this development – whether as consumers, employees or entrepreneurs.

    The full article can be found in our Magazine IAB-Forum.

    Full and Constrained Pareto Optimality with Incomplete Financial Markets

    12 November 2018

    We study the efficiency properties of equilibria in a neighborhood of economies with Pareto
    optimal (PO) initial endowments, when the number of agents is finitely large. We provide
    conditions under which, for all the economies in some open neighborhood of the PO reference
    economy, all the equilibria are constrained PO (CPO). We also provide conditions
    under which each open neighborhood of these exceptional PO economies contains both
    open sets of economies with CPO equilibria and open sets of economies where CPO fails.

    IAB-Discussion Paper 22/2018

    Labour market integration of refugees gains momentum

    17 October 2018

    Multiethnic architects are discussing blueprintsA good 70 percent of refugees in Germany come from eight non-European asylum seekers’ countries of origin. Their integration into the German labour market has increasingly gained momentum in recent years. Hence, the employment rate of people from these countries who have moved to Germany since the end of 2014 increased by almost 9 percentage points in the first six months of 2017 and by a good 12 percentage points to 28 percent in the first six months of 2018.

    The full article can be found in our magazine IAB-Forum.

    Employment effects of language training for unemployed immigrants

    10 October 2018

    Proficiency in the host country’s language is an important factor for a successful labor market integration of immigrants. In this study we analyze the effects of a language training program for professional purposes on the employment opportunities of the participants. We apply an instrumental variable approach and exploit differences in the local training intensities to deal with the problem of unobserved language skills in the data. Our results show that not taking into account endogeneity of language training leads to an underestimation of the effects. Bivariate probit estimates show that language training increases the employment probability of individuals with migration background who participated in 2014 by approximately seven percentage points two years after program start.

    IAB-Discussion Paper 21/2018

    Best Poster Award 2018 by the European Association of Labour Economists (EALE)

    19 September 2018

    Ulrich Zierahn, Terry Gregory, Florian Lehmer und Sabrina Genz (from left to right);  © private photoAt the 2018 conference of the European Association of Labour Economists (EALE), the Best Poster Award was presented to the team consisting of researchers from the Centre for European Economic Research (Melanie Arntz, Terry Gregory and Ulrich Zierahn) and the Institute for Employment Research (Sabrina Genz, Markus Janser, Florian Lehmer and Britta Matthes) for their research on the effects of the digital transformation on employment in Germany.


    Setting out for Digital Social Security

    13 September 2018

    Setting out for Digital Social Security Platform work is increasing worldwide, leaving a serious lack of social protection. In spite of the international and flexible character of platform work, extending social security is feasible – if one is ready to explore new avenues. This article is on setting out for Digital Social Security.

    The full article can be found in our magazine IAB-Forum

    Patterns of Overeducation in Europe: The Role of Field of Study

    12 September 2018

    This study investigates the incidence of overeducation among graduate workers in 21 EU countries and its underlying factors based on the European Labor Force Sur-vey 2016 (EU-LFS). Although controlling for a wide range of covariates, the particular interest lies in the role of fields of study for vertical educational mismatch. The study reveals country and gender differences in the impact of these factors.

    IAB-Discussion Paper 20/2018

    Women still hit the glass ceiling – despite operational promotion of equal opportunities

    29 August 2018

    ChencengleichheitThere is a large wage gap between women and men. The search for explanations and solutions must start exactly where wages are decided: in the enterprises. In Germany, operational measures to promote equal opportunities of women and men and formalised Human Resources processes shall help reduce this gap and ensure fair wages. Can this work?

    The full article can be found in our magazine IAB-Forum

    The German labour market after the introduction of the statutory minimum wage

    06 August 2018

    Buntstift liegt auf der Tastatur eines TaschenrechnersOn the 1st January 2015, a nationwide statutory minimum wage of €8.50 was introduced in Germany. On 1st January 2017 it was then increased to €8.84. Prior to and during its introduction the economic policy debate focused mainly on the development of wages and the minimum wage’s possible effect on the level of employment.

    The full article can be found in our magazine IAB-Forum

    Hiring by start-ups and regional labor supply

    30 July 2018
    Young firms find it difficult to attract (skilled) workers. Using linked employer-employee data for Germany we investigate how local labor market conditions affect the hiring success of young firms. In a first step, we estimate the probability of the founder becoming an employer. In a second step we analyze how local conditions influence the probability of hiring skilled human capital. The results indicate a positive relationship between the local unemployment level and the hiring probability of young firms.

    IAB-Discussion Paper 18/2018

    Links Lecture Award 2018 goes to Prof. Frauke Kreuter

    20 July 2018

    Prof. Dr. Frauke KreuterProf. Frauke Kreuter was honoured with the „Links Lecture Award 2018“ of the American Statistical Association (ASA) for adding important links in the progress of official statistics through leadership in education and training and distinguished contributions to the literature on social and economic measurement. Kreuter is head of the IAB Statistical Methods group and Professor at the University of Mannheim. She also holds a Professorship in the Joint Program in Survey Methodology at the University of Maryland. Kreuter presents her Links Lecture in Washington DC on November 5th, 2018.

    More Information

    Good scientific policy advice: the IAB's five principles

    20 July 2018

    Ein Mann und eine Frau unterhalten sich. Sie befinden sich in einem Bürogebäude.Policy advice is an integral part of policy-making in contemporary democracies and a central task of the IAB. But what makes “good” policy advice? Even if the quality of individual advisory services cannot be measured, quality criteria can be identified and quality assurance methods can be outlined.

    The full article can be found in our Magazine IAB-Forum.

    European youth unemployment in the aftermath of the Great Recession

    02 July 2018

    Five young men and women with documents in their hands are sitting in a row while waitingAs a consequence of the Great Recession, starting in most European countries in 2009, the number of unemployed young people increased significantly. Using 2008 as the reference point, where most European countries were performing quite well economically, the total number of unemployed young people aged 15 to 24 years was 4.2 million according to Eurostat. In the recession years European youth unemployment rose to 5.6 million in 2012 and declined thereafter to 3.8 million in 2017.

    The full article can be found in our Magazine IAB-Forum.

    Economic integration of migrants in Germany

    29 June 2018

    The dissertation evaluates economic integration of migrants in Germany from various perspectives. First, Hanna Brenzel shows that differences in job mobility influence wage trajectories of migrants and natives which, in turn, contribute to wage differentials. Next, she documents the fact that the immigrant-native wage gap is influenced by different personality traits. Last, her work demonstrates that there are differences between single and family migrants concerning their respective labor market integration processes.

    IAB-Bibliothek 369

    Do startups provide employment opportunities for disadvantaged workers?

    25 June 2018
    This paper analyzes whether startups offer job opportunities to workers potentially facing labor market problems. It compares the hiring patterns of startups and incumbents in the period 2003 to 2014 using administrative linked employer-employee data for Germany that allow to take the complete employment biographies of newly hired workers into account. The results indicate that young plants are more likely than incumbents to hire older and foreign applicants as well as workers who have instable employment biographies, come from unemployment or outside the labor force, or were affected by a plant closure. However, an analysis of entry wages reveals that disadvantageous worker characteristics come along with higher wage penalties in startups than in incumbents. Therefore, even if startups provide employment opportunities for certain groups of disadvantaged workers, the quality of these jobs in terms of initial remuneration seems to be low.

    IAB-Discussion Paper 17/2018

    Codetermination losing ground

    14 June 2018

    BetriebsversammlungLike collective bargaining coverage, codetermination is becoming less and less significant in German companies. Only a minority of employees, especially in East Germany, work in companies with a works council.

    The full article can be found in our Magazine IAB-Forum.

    R Package hmi: A Convenient Tool for Hierarchical Multiple Imputation and Beyond

    05 June 2018

    Applications of multiple imputation have long outgrown the traditional context of dealing with item nonresponse in cross-sectional data sets. Nowadays multiple imputation is also applied to impute missing values in hierarchical data sets, address confidentiality concerns, combine data from different sources, or correct measurement errors in surveys. However, software developments did not keep up with these recent extensions. Most imputation software can only deal with item nonresponse in cross-sectional settings and extensions for hierarchical data – if available at all – are typically limited in scope. Furthermore, to our knowledge no software is currently available for dealing with measurement error using multiple imputation approaches.

    IAB-Discussion Paper 16/2018

    Binding Collective Agreements: The Downward Trend Continues

    04 June 2018

    Close-up view of hands counting money with calculatorWages and working conditions are negotiated between employers and employees. Collective agreements provide both parties with an institutional framework to that end. But in the last few years, companies have seen a downward trend in binding collective agreements, and thus also in the importance of such agreements for the employees. In East Germany in particular, companies prefer to act outside of collective agreements, as evidenced by the latest data from the IAB Establishment Panel.

    The full article can be found in our Magazine IAB-Forum.

    Heterogeneous effects of investmentgrants – Evidence from a new measurement Approach

    22 May 2018

    This paper estimates establishment-level employment effects of investmentgrants in one oft the German Federal States receiving the most support. We analyze general treatment effects, as well as the infuence of heterogeneity in the characteristics and economic environment of the establishment on its employment development. Modifying the standard matching and difference-in-differences approach, we develop a new procedure that is particularly useful for evaluating funding programs within dividual treatment phases within the period of observation. Our data basis combines treatment-related, establishment-specifc and regional Information from different sources.The results suggest that Investment grants have a positive influence on the development of employment in establishment in both absolute and standardized fgures (i. e. in relation to the amount of subsidy received) – with considerable effect heterogeneity.

    IAB-Discussion Paper 15/2018



Current publications

The publication series "Current reports" is now an integrated part of the online magazin IAB-Forum.