We solve the problem of a social planner who seeks to minimize inequality via transfers with a fixed public budget in a distribution of exogenously given incomes. The appropriate solution method depends on the objective function: If it is convex, as in the case of the absolute mean deviation, it can be solved by an interior-point algorithm. If it is quasiconvex, as in case of the Gini coefficient, ...
China's government is promoting the shift towards a consumption-based economy since a few years. The explicit goal to significantly raise the percentage of wages in the national household income is integral part of the 12th Five-Year Plan (2011-15). The changes in the economic strategy are likely to affect the attractiveness of the country to foreign investors. In this paper, we raise the hypothesis ...
This paper analyzes to what extent parental leave decisions of mothers with young children depend on the decisions made by their coworkers. The identification of peer effects, which are defined as indirect effects of the behavior of a social reference group on individual outcomes, bears various challenges due to correlated characteristics within social groups and endogenous group membership. We overcome ...
2015 saw a number of important events which influenced the work of DIW Berlin and provoked exciting new research questions for our institute. The integration of refugees, the level of local investment in Germany, the adequacy of German schooling systems - these were just a few of the topics we worked on in the last year. Furthermore, 2015 marked the 90th anniversary of our institute, an opportunity ...
This paper presents a novel theory of corruption in public procurement. It considers an agency setting of contract execution where the principal is a politician who can commit to a contract auditing policy. It is found that a benevolent politician, by choosing a sufficiently strict auditing, deters the contracting firm from padding costs, conversely, a selfish politician chooses a relatively lax auditing ...
Social scientists and economists at DIW Berlin and Humboldt University Berlin researched the integration of refugees who arrived in Germany between 1990 and 2010 – survey data indicate difficult starting conditions with employment and language skills compared to other migrants, but refugees were able to catch up over time How can we help refugees to successfully integrate into Germany society ...
Academic and vocational qualifications play a crucial role when it comes to successfully integrating refugees and other migrants into society. What qualifications did migrants already acquire in their country of origin and which did they obtain in Germany? And to what extent are qualifications gained abroad recognized in Germany? The IAB-SOEP Migration Sample shows that the majority of the migrant ...
Whether they’re looking to participate in social life, enter the German labor market, or obtain relevant training certificates, learning German is a critical part of integration for the majority of refugees—and yet only a handful of studies have examined their language acquisition patterns and skill levels. The IAB-SOEP Migration Sample, which was collected by the Institute for Employment Research ...
