@techreport{FrodermannWrohlichZucco2020, type = {Working Paper}, author = {Frodermann, Corinna and Wrohlich, Katharina and Zucco, Aline}, title = {Parental Leave Reform and Long-run Earnings of Mothers}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {16}, issn = {2628-653X}, doi = {10.25932/publishup-44318}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-443188}, pages = {44}, year = {2020}, abstract = {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.}, language = {en} } @techreport{MuellerNeumannWrohlich2019, type = {Working Paper}, author = {M{\"u}ller, Kai-Uwe and Neumann, Michael and Wrohlich, Katharina}, title = {Labor supply under participation and hours constraints}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {3}, issn = {2628-653X}, doi = {10.25932/publishup-42765}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-427656}, pages = {50}, year = {2019}, abstract = {The paper extends a static discrete-choice labor supply model by adding participation and hours constraints. We identify restrictions by survey information on the eligibility and search activities of individuals as well as actual and desired hours. This provides for a more robust identification of preferences and constraints. Both, preferences and restrictions are allowed to vary by and are related through observed and unobserved characteristics. We distinguish various restrictions mechanisms: labor demand rationing, working hours norms varying across occupations, and insufficient public childcare on the supply side of the market. The effect of these mechanisms is simulated by relaxing different constraints at a time. We apply the empirical frame- work to evaluate an in-work benefit for low-paid parents in the German institutional context. The benefit is supposed to increase work incentives for secondary earners. Based on the structural model we are able to disentangle behavioral reactions into the pure incentive effect and the limiting impact of constraints at the intensive and extensive margin. We find that the in-work benefit for parents substantially increases working hours of mothers of young children, especially when they have a low education. Simulating the effects of restrictions shows their substantial impact on employment of mothers with young children.}, language = {en} } @techreport{MuellerWrohlich2019, type = {Working Paper}, author = {M{\"u}ller, Kai-Uwe and Wrohlich, Katharina}, title = {Does subsidized care for toddlers increase maternal labor supply?}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {9}, issn = {2628-653X}, doi = {10.25932/publishup-42772}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-427727}, pages = {50}, year = {2019}, abstract = {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.}, language = {en} } @techreport{CaliendoSchroederWittbrodt2019, type = {Working Paper}, author = {Caliendo, Marco and Schr{\"o}der, Carsten and Wittbrodt, Linda}, title = {The Causal Effects of the Minimum Wage Introduction in Germany}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {1}, issn = {2628-653X}, doi = {10.25932/publishup-42692}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-426929}, year = {2019}, abstract = {In 2015, Germany introduced a statutory hourly minimum wage that was not only universally binding but also set at a relatively high level. We discuss the short-run effects of this new minimum wage on a wide set of socio-economic outcomes, such as employment and working hours, earnings and wage inequality, dependent and self-employment, as well as reservation wages and satisfaction. We also discuss difficulties in the implementation of the minimum wage and the measurement of its effects related to non-compliance and suitability of data sources. Two years after the minimum wage introduction, the following conclusions can be drawn: while hourly wages increased for low-wage earners, some small negative employment effects are also identifiable. The effects on aspired goals, such as poverty and inequality reduction, have not materialized in the short run. Instead, a tendency to reduce working hours is found, which alleviates the desired positive impact on monthly income. Additionally, the level of non-compliance was substantial in the short run, thus drawing attention to problems when implementing such a wide-reaching policy.}, language = {en} } @techreport{CaliendoFossenKritikos2019, type = {Working Paper}, author = {Caliendo, Marco and Fossen, Frank M. and Kritikos, Alexander}, title = {What Makes an Employer?}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {13}, issn = {2628-653X}, doi = {10.25932/publishup-43736}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-437360}, year = {2019}, abstract = {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.}, language = {en} } @techreport{HuberRolvering2023, type = {Working Paper}, author = {Huber, Katrin and Rolvering, Geske}, title = {Public child care and mothers' career trajectories}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {64}, issn = {2628-653X}, doi = {10.25932/publishup-58731}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-587310}, pages = {33}, year = {2023}, abstract = {This paper studies the effect of public child care on mothers' career trajectories. To this end, we combine county-level data on child care coverage with detailed individual-level information from the German social security records and exploit a set of German reforms leading to a substantial temporal and spatial variation in child care coverage for children under the age of three. We conduct an event study approach that investigates the labor market outcomes of mothers in the years around the birth of their first child. We thereby explore career trajectories, both in terms of quantity and quality of employment. We find that public child care improves maternal labor supply in the years immediately following childbirth. However, the results on quality-related outcomes suggest that the effect of child care provision does not reach far beyond pure employment effects. These results do not change for mothers with different 'career costs of children'.}, language = {en} }