TY - RPRT A1 - Franks, Max A1 - Kalkuhl, Matthias A1 - Lessmann, Kai T1 - Optimal Pricing for Carbon Dioxide Removal Under Inter-Regional Leakage T2 - CEPA Discussion Papers N2 - Carbon dioxide removal (CDR) moves atmospheric carbon to geological or land-based sinks. In a first-best setting, the optimal use of CDR is achieved by a removal subsidy that equals the optimal carbon tax and marginal damages. We derive second-best subsidies for CDR when no global carbon price exists but a national government implements a unilateral climate policy. We find that the optimal carbon tax differs from an optimal CDR subsidy because of carbon leakage, terms-of-trade and fossil resource rent dynamics. First, the optimal removal subsidy tends to be larger than the carbon tax because of lower supply-side leakage on fossil resource markets. Second, terms-of-trade effects exacerbate this wedge for net resource exporters, implying even larger removal subsidies. Third, the optimal removal subsidy may fall below the carbon tax for resource-poor countries when marginal environmental damages are small. T3 - CEPA Discussion Papers - 43 KW - carbon pricing KW - trade KW - unilateral climate policy KW - terms-of-trade effects KW - removal subsidies Y1 - 2022 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-538080 SN - 2628-653X IS - 43 ER - TY - RPRT A1 - Caliendo, Marco A1 - Künn, Steffen A1 - Mahlstedt, Robert T1 - The Intended and Unintended Effects of Promoting Labor Market Mobility T2 - CEPA Discussion Papers N2 - Subsidizing the geographical mobility of unemployed workers may improve welfare by relaxing their financial constraints and allowing them to find jobs in more prosperous regions. We exploit regional variation in the promotion of mobility programs along administrative borders of German employment agency districts to investigate the causal effect of offering such financial incentives on the job search behavior and labor market integration of unemployed workers. We show that promoting mobility – as intended – causes job seekers to increase their search radius, apply for and accept distant jobs. At the same time, local job search is reduced with adverse consequences for reemployment and earnings. These unintended negative effects are provoked by spatial search frictions. Overall, the unconditional provision of mobility programs harms the welfare of unemployed job seekers. T3 - CEPA Discussion Papers - 42 KW - Job Search KW - Active Labor Market Policy KW - Labor Market Mobility KW - Unintended Consequence KW - Search Frictions Y1 - 2022 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-535229 SN - 2628-653X ER - TY - RPRT A1 - Bachelet, Marion A1 - Kalkuhl, Matthias A1 - Koch, Nicolas T1 - What if working from home will stick? BT - Distributional and climate impacts for Germany T2 - CEPA Discussion Papers N2 - The COVID-19 pandemic created the largest experiment in working from home. We study how persistent telework may change energy and transport consumption and costs in Germany to assess the distributional and environmental implications when working from home will stick. Based on data from the German Microcensus and available classifications of working-from-home feasibility for different occupations, we calculate the change in energy consumption and travel to work when 15% of employees work full time from home. Our findings suggest that telework translates into an annual increase in heating energy expenditure of 110 euros per worker and a decrease in transport expenditure of 840 euros per worker. All income groups would gain from telework but high-income workers gain twice as much as low-income workers. The value of time saving is between 1.3 and 6 times greater than the savings from reduced travel costs and almost 9 times higher for high-income workers than low-income workers. The direct effects on CO₂ emissions due to reduced car commuting amount to 4.5 millions tons of CO₂, representing around 3 percent of carbon emissions in the transport sector. T3 - CEPA Discussion Papers - 41 KW - commuting KW - home office KW - COVID-19 KW - energy expenditure KW - carbon emissions Y1 - 2022 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-532384 SN - 2628-653X IS - 41 ER - TY - RPRT A1 - Caliendo, Marco A1 - Wittbrodt, Linda T1 - Did the Minimum Wage Reduce the Gender Wage Gap in Germany? T2 - CEPA Discussion Papers N2 - In many countries, women are over-represented among low-wage employees, which is why a wage floor could benefit them particularly. Following this notion, we analyse the impact of the German minimum wage introduction in 2015 on the gender wage gap. Germany poses an interesting case study in this context, since it has a rather high gender wage gap and set the minimum wage at a relatively high level, affecting more than four million employees. Based on individual data from the Structure of Earnings Survey, containing information for over one million employees working in 60,000 firms, we use a difference-in- difference framework that exploits regional differences in the bite of the minimum wage. We find a significant negative effect of the minimum wage on the regional gender wage gap. Between 2014 and 2018, the gap at the 10th percentile of the wage distribution was reduced by 4.6 percentage points (or 32%) in regions that were strongly affected by the minimum wage compared to less affected regions. For the gap at the 25th percentile, the effect still amounted to -18%, while for the mean it was smaller (-11%) and not particularly robust. We thus find that the minimum wage can indeed reduce gender wage disparities. While the effect is highest for the low-paid, it also reaches up into higher parts of the wage distribution. T3 - CEPA Discussion Papers - 40 KW - Minimum Wage KW - Gender Wage Gap KW - Regional Bite Y1 - 2021 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-530464 SN - 2628-653X IS - 40 ER - TY - RPRT A1 - Borck, Rainald A1 - Gohl, Niklas T1 - Gentrification and Affordable Housing Policies T2 - CEPA Discussion Papers N2 - We use a quantitative spatial equilibrium model to evaluate the distributional and welfare impacts of a recent temporary rent control policy in Berlin, Germany. We calibrate the model to key features of Berlin’s housing market, in particular the recent gentrification of inner city locations. As expected, gentrification benefits rich homeowners, while poor renter households lose. Our counterfactual analysis mimicks the rent control policy. We find that this policy reduces welfare for rich and poor households and in fact, the percentage change in welfare is largest for the poorest households. We also study alternative affordable housing policies such as subsidies and re-zoning policies, which are better suited to address the adverse consequences of gentrification. T3 - CEPA Discussion Papers - 39 KW - rent control KW - housing market KW - gentrification Y1 - 2021 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-529300 SN - 2628-653X IS - 39 ER - TY - RPRT A1 - Späth, Maximilian T1 - It’s me again… Ask Avoidance and the Dynamics of Charitable Giving T2 - CEPA Discussion Papers N2 - Charities typically ask potential donors repeatedly for a donation. These repeated requests might trigger avoidance behavior. Considering that, this paper analyzes the impact of offering an ask avoidance option on charitable giving. In a proposed utility framework, the avoidance option decreases the social pressure to donate. At the same time, it induces feelings of gratitude toward the fundraiser, which may lead to a reciprocal increase in donations. The results of a lab experiment designed to disentangle the two channels show no negative impact of the option to avoid repeated asking on donations. Instead, the full model indicates a positive impact of the reciprocity channel. This finding suggests that it might be beneficial for charities to introduce an ask avoidance option during high-frequency fundraising campaigns. T3 - CEPA Discussion Papers - 38 KW - Charitable giving KW - Repeated request KW - Ask avoidance KW - Experiment Y1 - 2021 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-520991 SN - 2628-653X IS - 38 ER - TY - RPRT A1 - Mena, Wogene Berhanu T1 - Civilizational hexagon as a pathway to conflict management BT - examining its application in Sub-Saharan Africa in the post-cold war era T2 - State, Law, and Politics - Research and Discussion Papers T2 - Staat, Recht und Politik – Forschungs- und Diskussionspapiere N2 - This paper examines the attempts of implement-ing components of the concept called Civiliza-tional Hexagon as a pathway to civilizing conflict in the Sub-Saharan Africa in the post-Cold War period. Despite significant decline in the violent conflict and substantial progress socio-economic aspects in the period, most states in the region have been facing challenges in their way to civilize conflict related to absence of inclusive political system, weak state unable to monopolize the use of violence in its territory, and social injustice. On the other hand, states like Botswana and Mauritius managed to civilize conflict through significant improvement in democratic consolidation. Besides their relative success in implementing six elements, these states enabled to integrate traditional institutions with modern state apparatus that helped them to fill the gap created as result of exogenous state formation process and the resulting unfinished nation-building project. Additionally, traditional institutions contributed to managing diversity. N2 - Dieses Papier untersucht die Versuche, Komponenten des Konzepts „zivilisatorisches Hexagon“ als einen Weg zur Zivilisierung von Konlikten in Afrika südlich der Sahara nach 1990 umzusetzen. Trotz eines signifikanten Rückgangs der gewaltsamen Konflikte und erheblicher Fortschritte in sozio-ökonomischen Aspekten stehen die meisten Staaten in der Region vor Herausforderungen, die mit dem Fehlen eines inklusiven politischen Systems, einem schwachen Staat, der nicht in der Lage ist, das Gewaltmonopol in seinem Territorium auszuüben, und sozialer Ungerechtigkeit zusammenhängen. Gleichwohl sind Staaten wie Botswana und Mauritius in der Lage, Konflikte durch signifikante Verbesserung der demokratischen Konsolidierung zu zivilisieren. Neben ihrem relativen Erfolg bei der Umsetzung der sechs Elemente haben diese Staaten es geschafft, traditionelle Institutionen in den modernen Staatsapparat zu integrieren, was ihnen half, die Lücke zu füllen, die durch den exogenen Staatsbildungsprozess und das daraus resultierende unvollendete Projekt der Nationenbildung entstanden war. Zusätzlich halfen die traditionellen Institutionen dabei, Vielfalt zu sichern. T3 - Staat, Recht und Politik – Forschungs- und Diskussionspapiere = State, Law, and Politics - Research and Discussion Papers - 11 KW - conflict management KW - Sub-Saharan Africa Y1 - 2021 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-516695 SN - 2509-6974 PB - Universitätsverlag Potsdam CY - Potsdam ER - TY - RPRT A1 - Kritikos, Alexander A1 - Schiersch, Alexander A1 - Stiel, Caroline T1 - The productivity puzzle in business services T2 - CEPA Discussion Papers N2 - In Germany, the productivity of professional services, a sector dominated by micro and small firms, declined by 40 percent between 1995 and 2014. This productivity decline also holds true for professional services in other European countries. Using a German firm-level dataset of 700,000 observations between 2003 and 2017, we analyze this largely uncovered phenomenon among professional services, the 4th largest sector in the EU15 business economy, which provide important intermediate services for the rest of the economy. We show that changes in the value chain explain about half of the decline and the increase in part-time employment is a further minor part of the decline. In contrast to expectations, the entry of micro and small firms, despite their lower productivity levels, is not responsible for the decline. We also cannot confirm the conjecture that weakening competition allows unproductive firms to remain in the market. T3 - CEPA Discussion Papers - 37 KW - business services KW - labor productivity KW - productivity slowdown Y1 - 2021 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-514536 SN - 2628-653X IS - 37 ER - TY - RPRT A1 - Hinz, Julian A1 - Stammann, Amrei A1 - Wanner, Joschka T1 - State Dependence and Unobserved Heterogeneity in the Extensive Margin of Trade T2 - CEPA Discussion Papers N2 - We study the role and drivers of persistence in the extensive margin of bilateral trade. Motivated by a stylized heterogeneous firms model of international trade with market entry costs, we consider dynamic three-way fixed effects binary choice models and study the corresponding incidental parameter problem. The standard maximum likelihood estimator is consistent under asymptotics where all panel dimensions grow at a constant rate, but it has an asymptotic bias in its limiting distribution, invalidating inference even in situations where the bias appears to be small. Thus, we propose two different bias-corrected estimators. Monte Carlo simulations confirm their desirable statistical properties. We apply these estimators in a reassessment of the most commonly studied determinants of the extensive margin of trade. Both true state dependence and unobserved heterogeneity contribute considerably to trade persistence and taking this persistence into account matters significantly in identifying the effects of trade policies on the extensive margin. T3 - CEPA Discussion Papers - 36 KW - dynamic binary choice KW - extensive margin KW - high-dimensional fixed effects KW - incidental parameter bias correction KW - trade policy Y1 - 2021 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-511919 SN - 2628-653X ER - TY - RPRT A1 - Marcus, Jan A1 - Siedler, Thomas A1 - Ziebarth, Nicolas R. T1 - The Long-Run Effects of Sports Club Vouchers for Primary School Children T2 - CEPA Discussion Papers N2 - Starting in 2009, the German state of Saxony distributed sports club membership vouchers among all 33,000 third graders in the state. The policy’s objective was to encourage them to develop a long-term habit of exercising. In 2018, we carried out a large register-based survey among several cohorts in Saxony and two neighboring states. Our difference-in-differences estimations show that, even after a decade, awareness of the voucher program was significantly higher in the treatment group. We also find that youth received and redeemed the vouchers. However, we do not find significant short- or long-term effects on sports club membership, physical activity, overweightness, or motor skills. T3 - CEPA Discussion Papers - 34 KW - physical activity KW - voucher KW - primary school KW - obesity KW - habit formation KW - objective health measures KW - school health examinations KW - windfall gains KW - crowding out KW - taxpayer subsidies Y1 - 2021 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-508978 SN - 2628-653X IS - 34 ER -