Institut für Arbeitsmarkt- und Berufsforschung

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

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

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

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?

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?

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?

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

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

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

IAB-Discussion Paper 14/2020

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

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

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

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