TY - RPRT A1 - Frodermann, Corinna A1 - Wrohlich, Katharina A1 - Zucco, Aline T1 - Parental Leave Reform and Long-run Earnings of Mothers T2 - CEPA Discussion Papers N2 - Paid parental leave schemes have been shown to increase women’s employment rates but decrease their wages in case of extended leave durations. In view of these potential trade-offs, many countries are discussing the optimal design of parental leave policies. We analyze the impact of a major parental leave reform on mothers’ long-term earnings. The 2007 German parental leave reform replaced a means-tested benefit with a more generous earnings-related benefit that is granted for a shorter period of time. Additionally, a “daddy quota” of two months was introduced. To identify the causal effect of this policy on long-run earnings of mothers, we use a difference-in-difference approach that compares labor market outcomes of mothers who gave birth just before and right after the reform and nets out seasonal effects by including the year before. Using administrative social security data, we confirm previous findings and show that the average duration of employment interruptions increased for high-income mothers. Nevertheless, we find a positive long-run effect on earnings for mothers in this group. This effect cannot be explained by changes in working hours, observed characteristics, changes in employer stability or fertility patterns. Descriptive evidence suggests that the stronger involvement of fathers, incentivized by the “daddy months”, could have facilitated mothers’ re-entry into the labor market and thereby increased earnings. For mothers with low prior-to-birth earnings, however, we do not find any beneficial labor market effects of this parental leave reform. T3 - CEPA Discussion Papers - 16 KW - parental leave KW - wages KW - labor supply Y1 - 2020 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-443188 SN - 2628-653X IS - 16 ER - TY - RPRT A1 - Gallego Granados, Patricia A1 - Wrohlich, Katharina T1 - Selection into Employment and the Gender Wage Gap across the Distribution and Over Time T2 - CEPA Discussion Papers N2 - Using quantile regression methods, this paper analyses the gender wage gap across the wage distribution and over time (1990–2014), while controlling for changing sample selection into full-time employment. Our findings show that the selection-corrected gender wage gap is much larger than the one observed in the data, which is mainly due to large positive selection of women into full-time employment. However, we show that selection-corrected wages of male and female workers at the lower half of the distribution have moderately converged over time. The reason for this development have been changes in the composition of the male full-time employment force over time, which in spite of the rather constant male full-time employment rate, have given place to a small but rising selection bias in male observed wages. In the upper half of the wage distribution, however, neither the observed nor the selection-corrected gender wage gap has narrowed over time. T3 - CEPA Discussion Papers - 15 KW - gender wage gap KW - quantile regression KW - selection into employment Y1 - 2020 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-441691 SN - 2628-653X IS - 15 ER - TY - RPRT A1 - Caliendo, Marco A1 - Tübbicke, Stefan T1 - Do Start-Up Subsidies for the Unemployed Affect Participants’ Well-Being? BT - A Rigorous Look at (Un-)Intended Consequences of Labor Market Policies T2 - CEPA Discussion Papers N2 - We estimate the long-term effects of start-up subsidies (SUS) for the unemployed on subjective outcome indicators of well-being, as measured by the participants’ satisfaction in different domains. This extends previous analyses of the current German SUS program (“Gründungszuschuss”) that focused on objective outcomes – such as employment and income – and allows us to make a more complete judgment about the overall effects of SUS at the individual level. This is especially important because subsidizing the transition into self-employment may have unintended adverse effects on participants’ well-being due to its risky nature and lower social security protection, especially in the long run. Having access to linked administrative-survey data providing us with rich information on pre-treatment characteristics, we base our analysis on the conditional independence assumption and use propensity score matching to estimate causal effects within the potential outcomes framework. We find long-term positive effects on job satisfaction but negative effects on individuals’ satisfaction with their social security situation. Further findings suggest that the negative effect on satisfaction with social security may be driven by negative effects on unemployment and retirement insurance coverage. Our heterogeneity analysis reveals substantial variation in effects across gender, age groups and skill levels. The sensitivity analyses show that these findings are highly robust. T3 - CEPA Discussion Papers - 14 KW - Start-Up Subsidies KW - Propensity Score Matching KW - Counterfactual Analysis KW - Well-Being Y1 - 2019 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-437468 SN - 2628-653X IS - 14 ER - TY - RPRT A1 - Caliendo, Marco A1 - Fossen, Frank M. A1 - Kritikos, Alexander T1 - What Makes an Employer? T2 - CEPA Discussion Papers N2 - As the policy debate on entrepreneurship increasingly centers on firm growth in terms of job creation, it is important to better understand which variables influence the first hiring decision and which ones influence the subsequent survival as an employer. Using the German Socio-economic Panel (SOEP), we analyze what role individual characteristics of entrepreneurs play in sustainable job creation. While human and social capital variables positively influence the hiring decision and the survival as an employer in the same direction, we show that none of the personality traits affect the two outcomes in the same way. Some traits are only relevant for survival as an employer but do not influence the hiring decision, other traits even unfold a revolving door effect, in the sense that employers tend to fail due to the same characteristics that positively influenced their hiring decision. T3 - CEPA Discussion Papers - 13 KW - employer KW - entrepreneurship KW - business venturing KW - firm growth KW - employment growth KW - personality Y1 - 2019 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-437360 SN - 2628-653X IS - 13 ER - TY - RPRT A1 - Krieger, Heike A1 - Püschmann, Jonas T1 - Securing of Resources as a Valid Reason for Using Force? BT - A Pre-Emptive Defence of the Prohibition on the Use of Force T2 - KFG Working Paper Series N2 - A growing demand for natural resources embedded in current changes of the international order will put pressure on states to secure the future availability of these resources. Some political discourses suggest that states might respond by challenging the foundations of international law. Whereas the UN Charter was inter alia aimed at eliminating uses of force for economic reasons, one may observe an on-going trend of securitization of matters of resource supply resulting into the revival of self-preservation doctrines. The chapter will show that those claims lack a normative foundation in the current framework of the prohibition of the use of force. Moreover, international law has sufficient instruments to cope with disputes over access to resources by other means than the use of force. The international community, therefore, must oppose claims that may contribute to normative uncertainties and strengthen already existing instruments of pacific settlement of disputes. T3 - KFG Working Paper Series - 31 Y1 - 2019 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-435738 IS - 31 ER - TY - RPRT A1 - Jo, Hyeran T1 - Rise and Decline of International Rule of Law BT - Case of Non-State Armed Actors T2 - KFG Working Paper Series N2 - This paper assesses the rise and decline of international rule of law in the case of non-state armed actors. Both signs of rise and signs of decline of international rule of law show in the case of non- state armed actors. Signs of rise include the expansion of coverage of international humanitarian law (IHL) and international criminal law, as well as international legal argumentation and rhetoric made by non-state armed groups. Some non-state armed actors express that they are governed by IHL in public statements or bilateral agreements with international actors, partly acknowledging universality of international humanitarian norms, and sometimes act as such. Signs of decline in the international rule of law also show – although some of them can be seen as business-as-usual – privileging of military advantage, instrumental use of international law (as justification and local interpretations), as well as conflicting understanding of IHL between local and global norms. The multiplicity of non-state actors also portends the decline of international rule of law, with the proliferation of many non-organized groups without legitimacy-seeking motivations. T3 - KFG Working Paper Series - 39 KW - rule of law KW - international rule of law KW - non-state actors KW - non-state armed actors KW - rise KW - decline KW - international humanitarian law KW - international criminal law Y1 - 2019 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-435900 IS - 39 ER - TY - RPRT A1 - Sandholtz, Wayne T1 - Resurgent Authoritarianism and the International Rule of Law T2 - KFG Working Paper Series N2 - Modern rule of law and post-war constitutionalism are both anchored in rights-based limitations on state authority. Rule-of-law norms and principles, at both domestic and international levels, are designed to protect the freedom and dignity of the person. Given this “thick” conception of the rule of law, authoritarian practices that remove constraints on domestic political leaders and weaken mechanisms for holding them accountable necessarily erode both domestic and international rule of law. Drawing on political science research on authoritarian politics, this study identifies three core elements of authoritarian political strategies: subordination of the judiciary, suppression of independent news media and freedom of expression, and restrictions on the ability of civil society groups to organize and participate in public life. According to available data, each of these three practices has become increasingly common in recent years. This study offers a composite measure of the core authoritarian practices and uses it to identify the countries that have shown the most marked increases in authoritarianism. The spread and deepening of these authoritarian practices in diverse regimes around the world diminishes international rule of law. The conclusion argues that resurgent authoritarianism degrades international rule of law even if this is defined as the specifically post-Cold War international legal order. T3 - KFG Working Paper Series - 38 Y1 - 2019 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-435899 IS - 38 ER - TY - RPRT A1 - Nolte, Georg T1 - How to Identify Customary International Law? – On the Final Outcome of the Work of the International Law Commission (2018) T2 - KFG Working Paper Series N2 - How to identify customary international law is an important question of international law. The International Law Commission has in 2018 adopted a set of sixteen conclusions, together with commentaries, on this topic. The paper consists of three parts: First, the reasons are discussed why the Commission came to work on the topic “Identification of customary international law”. Then, some of its conclusions are highlighted. Finally, the outcome of the work of the Commission is placed in a general context, before concluding. T3 - KFG Working Paper Series - 37 Y1 - 2019 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-435884 IS - 37 ER - TY - RPRT A1 - Caliendo, Marco A1 - Künn, Steffen A1 - Weißenberger, Martin T1 - Catching up or Lagging Behind? BT - The Long-Term Business and Innovation Potential of Subsidized Start-Ups out of Unemployment T2 - CEPA Discussion Papers N2 - From an active labor market policy perspective, start-up subsidies for unemployed individuals are very effective in improving long-term labor market outcomes for participants. From a business perspective, however, the assessment of these public programs is less clear since they might attract individuals with low entrepreneurial abilities and produce businesses with low survival rates and little contribution to job creation, economic growth, and innovation. In this paper, we use a rich data set to compare participants of a German start-up subsidy program for unemployed individuals to a group of regular founders who started from nonunemployment and did not receive the subsidy. The data allows us to analyze their business performance up until 40 months after business formation. We find that formerly subsidized founders lag behind not only in survival and job creation, but especially also in innovation activities. The gaps in these business outcomes are relatively constant or even widening over time. Hence, we do not see any indication of catching up in the longer run. While the gap in survival can be entirely explained by initial differences in observable start-up characteristics, the gap in business development remains and seems to be the result of restricted access to capital as well as differential business strategies and dynamics. Considering these conflicting results for the assessment of the subsidy program from an ALMP and business perspective, policy makers need to carefully weigh the costs and benefits of such a strategy to find the right policy mix. T3 - CEPA Discussion Papers - 12 KW - Entrepreneurship KW - Start-up Subsidies KW - Business Grow KW - Innovation KW - Job Creation Y1 - 2019 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-437012 SN - 2628-653X IS - 12 ER - TY - RPRT A1 - Neugebauer, Konrad T1 - Holding Domestic Judges Accountable under International Criminal Law BT - A Useful Step to Foster the International Rule of Law? T2 - KFG Working Paper Series N2 - This article explores, whether domestic judges might be held accountable under international criminal law (ICL). To date, international criminal justice has almost entirely focused on prosecuting political or military leaders. The Justice Case tried before the Nuremberg Military Tribunal in 1946 marks the most prominent exception. Prior to it, the judiciary – otherwise considered the epitome of justice – had mutated into a murderous machinery under Nazi rule. Judicial decisions do have far-reaching implications possibly constituting or contributing to international crimes. This holds true in a wide range of cases, for instance on practices of warfare and torture, on the use of certain weapon technologies, or on policies relating to minorities or racial segregation. I argue that domestic judges are accountable when engaging in international crimes. The article delves into technical aspects of criminal law; as well as the notions of judicial independence and immunity. While guaranteeing the rule of law, these two notions challenge the core idea of ICL: its equal application vis-à-vis all perpetrators of international crimes irrespective of official capacity. In order to differentiate due judicial conduct and its abuse in violation of ICL, I suggest a threshold a judicial act needs to exceed for entailing accountability for an international crime. T3 - KFG Working Paper Series - 36 Y1 - 2019 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-435877 IS - 36 ER - TY - RPRT A1 - Sandholtz, Wayne T1 - Human Rights Courts and Global Constitutionalism BT - Coordination through Judicial Dialogue T2 - KFG Working Paper Series N2 - International courts regularly cite each other, in part as a means of building legitimacy. Such international, cross-court use of precedent (or “judicial dialogue”) among the regional human rights courts and the Human Rights Committee has an additional purpose and effect: the construction of a rights-based global constitutionalism. Judicial dialogue among the human rights courts is purposeful in that the courts see themselves as embedded in, and contributing to, a global human rights legal system. Cross-citation among the human rights courts advances the construction of rights-based global constitutionalism in that it provides a basic degree of coordination among the regional courts. The jurisprudence of the U.N. Human Rights Committee (HRC), as an authoritative interpreter of core international human rights norms, plays the role of a central focal point for the decentralized coordination of jurisprudence. The network of regional courts and the HRC is building an emergent institutional structure for global rights-based constitutionalism. T3 - KFG Working Paper Series - 35 Y1 - 2019 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-435831 IS - 35 ER - TY - RPRT A1 - Pellet, Alain T1 - Values and Power Relations – The “Disillusionment” of International Law? T2 - KFG Working Paper Series N2 - This paper – which is based on the Thomas Franck Lecture held by the author at Humboldt University Berlin on 13 May 2019 – argues that the most likely development of international to be expected will be the coexistence of two “legal worlds”. On the one hand, an inter-State law brutally regulating political relations between human groups whitewashed by nationalism; on the other hand, a transnational or “a-national” law regulating economic relations between private as well as public interests. Further, the paper argues that there are two obvious victims – of very different nature – of this foreseeable evolution: the human being on the one hand, the certainty and effectiveness of the rule of law itself on the other hand. T3 - KFG Working Paper Series - 34 Y1 - 2019 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-435819 IS - 34 ER - TY - RPRT A1 - Kulaga, Julian T1 - A Renaissance of the Doctrine of Rebus Sic Stantibus? T2 - KFG Working Paper Series N2 - Once the “popular plaything of Realpolitiker” the doctrine of rebus sic stantibus post the 1969 VCLT is often described as an objective rule by which, on grounds of equity and justice, a fundamental change of circumstances may be invoked as a ground for termination. Yet recent practice from States such as Ecuador, Russia, Denmark and the United Kingdom suggests that it is returning with a new livery. They point to an understanding based on vital States’ interests––a view popular among scholars such as Erich Kaufmann at the beginning of the last century. T3 - KFG Working Paper Series - 32 Y1 - 2019 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-435788 IS - 32 ER - TY - RPRT A1 - Devaney, James Gerard T1 - Selecting Investment Arbitrators BT - Reconciling Party Autonomy and the International Rule of Law T2 - KFG Working Paper Series N2 - This paper focuses on one particular issue which has arisen in the course of the ongoing debate on the reform of investor-State dispute settlement (ISDS), namely that of the appointment of arbitrators. Taking as its starting point that there now exists tentative consensus that the present system for the appointment of arbitrators either causes or exacerbates certain problematic aspects of the current ISDS system, the paper explores one option for reform, namely the introduction of an independent panel for the selection of investment arbitrators. In doing so, it is argued that a shift in the normative basis of the rules governing appointments is required in order to accommodate the principles of party autonomy and the international rule of law. Such reform, while not completely removing the initiative that parties presently enjoy, is the most efficient way to introduce rule of law considerations such as a measure of judicial independence into the current appointments system. This, it is argued, would in turn help to address some of the problematic features of the appointment of arbitrators in ISDS. T3 - KFG Working Paper Series - 33 Y1 - 2019 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-435797 IS - 33 ER - TY - RPRT A1 - Caliendo, Marco A1 - Goethner, Maximilian A1 - Weißenberger, Martin T1 - Entrepreneurial Persistence Beyond Survival: Measurement and Determinants T2 - CEPA Discussion Papers N2 - Entrepreneurial persistence is demonstrated by an entrepreneur’s continued positive maintenance of entrepreneurial motivation and constantly-renewed active engagement in a new business venture despite counter forces or enticing alternatives. It is thus a crucial factor for entrepreneurs when pursuing and exploiting their business opportunities and to realize potential economic gains and benefits. Using rich data on a representative sample of German business founders, we investigate the determinants of entrepreneurial persistence. Next to observed survival we also construct a hybrid persistence measure capturing also the motivational dimension of persistence. We analyze the influence of individual-level (human capital and personality) and business-related characteristics on both measures as well as their relative importance. We find that the two indicators emphasize different aspects of persistence. For the survival indicator, the predictive power is concentrated in business characteristics and human capital, while for hybrid persistence, the dominant factors are business characteristics and personality. Finally, we show that results are heterogeneous across subgroups. In particular, formerly-unemployed founders do not differ in survival chances, but they are more likely to lack a high psychological commitment to their business ventures. T3 - CEPA Discussion Papers - 11 KW - Entrepreneurship KW - Start-ups KW - Persistence KW - Survival Y1 - 2019 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-434563 SN - 2628-653X IS - 11 ER - TY - RPRT A1 - Bruttel, Lisa Verena A1 - Felgendreher, Simon A1 - Güth, Werner A1 - Hertwig, Ralph T1 - Strategic ignorance in repeated prisoners’ dilemma experiments and its effects on the dynamics of voluntary cooperation T2 - CEPA Discussion Papers N2 - Being ignorant of key aspects of a strategic interaction can represent an advantage rather than a handicap. We study one particular context in which ignorance can be beneficial: iterated strategic interactions in which voluntary cooperation may be sustained into the final round if players voluntarily forego knowledge about the time horizon. We experimentally examine this option to remain ignorant about the time horizon in a finitely repeated two-person prisoners’ dilemma game. We confirm that pairs without horizon knowledge avoid the drop in cooperation that otherwise occurs toward the end of the game. However, this effect is superposed by cooperation declining more rapidly in pairs without horizon knowledge during the middle phase of the game, especially if players do not know that the other player also wanted to remain ignorant of the time horizon. T3 - CEPA Discussion Papers - 10 KW - strategic ignorance KW - cooperation KW - prisoners' dilemma KW - experiment Y1 - 2019 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-431881 SN - 2628-653X IS - 10 ER - TY - RPRT A1 - McLachlan, Campbell T1 - The Double-facing Foreign Relations Function of the Executive and Its Self-enforcing Obligation to Comply with International Law T2 - KFG Working Paper Series N2 - How does the international Rule of Law apply to constrain the conduct of the Executive within a constitutional State that adopts a dualist approach to the reception of international law? This paper argues that, so far from being inconsistent with the concept of the Rule of Law, the Executive within a dualist constitution has a self-enforcing obligation to abide by the obligations of the State under international law. This is not dependent on Parliament’s incorporation of treaty obligations into domestic law. It is the correlative consequence of the allocation to the Executive of the power to conduct foreign relations. The paper develops this argument in response to recent debate in the United Kingdom on whether Ministers have an obligation to comply with international law–a reference that the Government removed from the Ministerial Code. It shows that such an obligation is consistent with both four centuries of the practice of the British State and with principle. T3 - KFG Working Paper Series - 30 Y1 - 2019 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-429088 IS - 30 ER - TY - RPRT A1 - Müller, Kai-Uwe A1 - Wrohlich, Katharina T1 - Does subsidized care for toddlers increase maternal labor supply? BT - Evidence from a large-scale expansion of early childcare T2 - CEPA Discussion Papers N2 - Expanding public or publicly subsidized childcare has been a top social policy priority in many industrialized countries. It is supposed to increase fertility, promote children’s development and enhance mothers’ labor market attachment. In this paper, we analyze the causal effect of one of the largest expansions of subsidized childcare for children up to three years among industrialized countries on the employment of mothers in Germany. Identification is based on spatial and temporal variation in the expansion of publicly subsidized childcare triggered by two comprehensive childcare policy reforms. The empirical analysis is based on the German Microcensus that is matched to county level data on childcare availability. Based on our preferred specification which includes time and county fixed effects we find that an increase in childcare slots by one percentage point increases mothers’ labor market participation rate by 0.2 percentage points. The overall increase in employment is explained by the rise in part-time employment with relatively long hours (20-35 hours per week). We do not find a change in full-time employment or lower part-time employment that is causally related to the childcare expansion. The effect is almost entirely driven by mothers with medium-level qualifications. Mothers with low education levels do not profit from this reform calling for a stronger policy focus on particularly disadvantaged groups in coming years. T3 - CEPA Discussion Papers - 9 KW - childcare provision KW - mother’s labor supply KW - generalized difference-in-difference Y1 - 2019 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-427727 SN - 2628-653X IS - 9 ER - TY - RPRT A1 - Borck, Rainald A1 - Schrauth, Philipp T1 - Population density and urban air quality T2 - CEPA Discussion Papers N2 - We use panel data from Germany to analyze the effect of population density on urban air pollution (nitrogen oxides, particulate matter and ozone). To address unobserved heterogeneity and omitted variables, we present long difference/fixed effects estimates and instrumental variables estimates, using historical population and soil quality as instruments. Our preferred estimates imply that a one-standard deviation increase in population density increases air pollution by 3-12%. T3 - CEPA Discussion Papers - 8 KW - population density KW - air pollution Y1 - 2019 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-427719 SN - 2628-653X IS - 8 ER - TY - RPRT A1 - Bruttel, Lisa Verena A1 - Nithammer, Juri A1 - Stolley, Florian T1 - ”Thanks in Advance” BT - The Negative Effect of a Polite Phrase on Compliance with a Request T2 - CEPA Discussion Papers N2 - This paper studies the effect of the commonly used phrase “thanks in advance” on compliance with a small request. In a controlled laboratory experiment we ask participants to give a detailed answer to an open question. The treatment variable is whether or not they see the phrase “thanks in advance.” Our participants react to the treatment by exerting less effort in answering the request even though they perceive the phrase as polite. T3 - CEPA Discussion Papers - 7 KW - compliance behavior KW - gratitude KW - reciprocity KW - experiment Y1 - 2019 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-427706 SN - 2628-653X IS - 7 ER -