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Explaining Import Variety and Quality: The Role of the Income Distribution

In this paper we examine whether a generalized version of Flam and Helpman’s (1987) model of vertical differentiation can reconcile three facts. One, countries import only a subset of available varieties. Two, import prices vary across exporters within narrow product categories. Three, US growth in both import variety and import price dispersion has occurred at the same time that the US income distribution ...

Earnings Inequality in Europe: Structure and Patterns of Inter-Temporal Changes

The Determinants of Reservation Wages in Germany: Does a Motivation Gap Exist?

This paper investigates the reservation wages of unemployed persons on the basis of a job-search model with non-static reservation wages using panel data from Germany from 1987 to 1998. The results suggest that reservation wages are relatively high in Germany compared to other countries. Furthermore, pooled regression results show that most recent wages and personal characteristics of the unemployed ...

Reservation Wages, Offered Wages, and Unemployment Duration - New Empirical Evidence

No Benefits of Seeing a Dark Future? A Note on Recent Findings on the Effects of Forecasting Life Satisfaction

In the recent article (Lang et al., 2013), the authors explore functional outcomes of life satisfaction with regard to hazards of mortality using the adult life span sample of the national German Socio-Economic Panel (GSOEP). The results suggest that “being overly optimistic predicting a better future than actually observed was associated with […] a great risk of mortality within the following decade”. ...

Caregiving, Welfare States and Mothers' Poverty

Benefit Duration, Unemployment Duration and Job Match Quality: A Regression-Discontinuity Approach

The generosity of the Unemployment Insurance system (UI) plays a central role for the job search behavior of unemployed individuals. Standard search theory predicts that an increase in UI benefit generosity, either in terms of benefit duration or entitlement, has a negative impact on the job search activities of the unemployed increasing their unemployment duration. Despite the disincentive effect ...

Self-Employment Dynamics, State Dependence and Cross-Mobility Patterns

Evaluating the German "Mini-Job" Reform Using a True Natural Experiment

Increasing work incentives for people with low income is a common topic in the policy debate across European countries. The ‘Mini-Job’ reform in Germany had a similar motivation. We carry out an ex-post evaluation to identify the short-run effects of this reform. Our identification strategy uses an exogenous variation in the interview months in the Socio-Economic Panel Study (SOEP), which allows us ...

Short-Run Distributional Effects of Public Education Transfers to Tertiary Education Students in Seven European Countries

Direct provision of public services can alter the balance of resources across income groups. We focus on the issues arising when taking account of the impact of publicly provided education services across the income distribution. We combine OECD information on spending per student in particular levels of the education system with micro data from nationwide income surveys to track the allocation of ...