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Long-Term Employment Effects of the Minimum Wage in Germany: New Data and Estimators

We investigate the long-term effects of the introduction of the German minimum wage in 2015 and its subsequent increases on regional employment. Using comprehensive survey data, we are able to measure the regional bite of the minimum wage in 2014, just before its introduction, as well as in 2018, before it was raised substantially in several steps. The introduction mainly affected the labour market ...

Is There a Desired Added Worker Effect? Evidence from Involuntary Job Losses

While the existing evidence on added worker effects is mixed, most studies find no or only small effects. However, studies to date have mostly analyzed individuals’ actual labor supply responses to their partners’ job loss, neglecting to consider a potential mismatch between desired and actual labor supply adjustments. Using data from the German Socio-Economic Panel (SOEP), we study individuals’ changes ...

Examining Double Standards in Layoff Preferences and Expectations for Gender, Age, and Ethnicity When Violating the Social Norm of Vaccination

Whether vaccination refusal is perceived as a social norm violation that affects layoff decisions has not been tested. Also unknown is whether ascribed low-status groups are subject to double standards when they violate norms, experiencing stronger sanctions in layoff preferences and expectations, and whether work performance attenuates such sanctioning. Therefore, we study layoff preferences and expectations ...

Financial Incentives and Labor Force Participation of Older Workers: Evidence from France

This paper estimates the impact of financial incentives on retirement decision in France for cohorts of men retiring between 1994 to 2012. During these two decades, a number of pension reforms took place, all aiming to achieve financial balance in the context of increasing life expectancy. These reforms strengthened incentives to retire later, either by ofoffering increased pension benefit for later ...

The Economic Burden of Burnout (with Arash Nekoei and Jósef Sigurdsson)

We study the economic consequences of stress-related occupational illnesses (burnout) using Swedish administrative data. Using a mover design, we find that high-burnout firms and stressful occupations universally raise burnout risk yet disproportionately impact low-stress-tolerance workers. Workers who burn out endure permanent earnings losses regardless of gender—while women are three times more...

Policy Uncertainty, Misinformation and Statutory Retirement Age Reform

Aging societies put a strain on social security systems worldwide. Raising the statutory retirement age (SRA) is one of the most common tools that policymakers employ to respond to this pressure. We study the effect of policy reform on savings, labor supply, and welfare. Using data from the German Socio-Economic Panel (SOEP), we estimate a structural life-cycle model. The model features subjective...

Why Do Migrants Stay Unexpectedly? Misperceptions and Implications for Integration

Empirical evidence suggests that the majority of immigrants who initially planned a temporary stay end up staying permanently in the host country. Since beliefs about the duration of stay are a strong determinant of integration, many long-term migrants may end up less than optimally integrated. We theoretically model migrants with potential misperceptions about their future utility and wage prospects ...

Equilibrium Effects of Payroll Tax Reductions and Optimal Policy Design

We quantify the unintended effects of a low-wage payroll tax reduction using an equilibrium search model featuring bargaining, worker and firm productivity heterogeneity, labor taxes, and a minimum wage. The decentralized economy is inefficient due to search externalities and labor market policies. We estimate the model using French data and find that a significant reduction in low-wage payroll taxes ...

Good care system reduces gender care gap

DIW Women Executives Barometer: Method Report and Codebook for the Waves 2015-2024