@techreport{CaliendoWittbrodt2021, type = {Working Paper}, author = {Caliendo, Marco and Wittbrodt, Linda}, title = {Did the Minimum Wage Reduce the Gender Wage Gap in Germany?}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {40}, issn = {2628-653X}, doi = {10.25932/publishup-53046}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-530464}, pages = {26}, year = {2021}, abstract = {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.}, language = {en} } @techreport{BorckGohl2021, type = {Working Paper}, author = {Borck, Rainald and Gohl, Niklas}, title = {Gentrification and Affordable Housing Policies}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {39}, issn = {2628-653X}, doi = {10.25932/publishup-52930}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-529300}, pages = {51}, year = {2021}, abstract = {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.}, language = {en} } @techreport{Spaeth2021, type = {Working Paper}, author = {Sp{\"a}th, Maximilian}, title = {It's me again… Ask Avoidance and the Dynamics of Charitable Giving}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {38}, issn = {2628-653X}, doi = {10.25932/publishup-52099}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-520991}, pages = {25}, year = {2021}, abstract = {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.}, language = {en} } @techreport{KritikosSchierschStiel2021, type = {Working Paper}, author = {Kritikos, Alexander and Schiersch, Alexander and Stiel, Caroline}, title = {The productivity puzzle in business services}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {37}, issn = {2628-653X}, doi = {10.25932/publishup-51453}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-514536}, pages = {37}, year = {2021}, abstract = {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.}, language = {en} } @techreport{HinzStammannWanner2021, type = {Working Paper}, author = {Hinz, Julian and Stammann, Amrei and Wanner, Joschka}, title = {State Dependence and Unobserved Heterogeneity in the Extensive Margin of Trade}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, issn = {2628-653X}, doi = {10.25932/publishup-51191}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-511919}, pages = {62}, year = {2021}, abstract = {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.}, language = {en} } @techreport{Brenner2021, type = {Working Paper}, author = {Brenner, Andri}, title = {The Social Power of Spillover Effects}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {35}, issn = {2628-653X}, doi = {10.25932/publishup-51109}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-511098}, pages = {60}, year = {2021}, abstract = {Economists are worried that the lack of property rights to natural capital goods jeopardizes the sustainability of the economic growth miracle that has existed since industrialization. This article questions their position. A vertical innovation model with a portfolio of technologies for abatement, adaptation, and general (Harrod-neutral) technology reveals that environmental damage spillovers have a comparable effect on research profits as technology spillovers so that the social costs of depleting public natural capital are internalized. As long as there is free access to information and technology, growth is sustainable and the allocation of research efforts among alternative technologies is socially optimal. While there still is a need to address externalities from monopolistic research markets, no environmental policy is necessary. These results suggest that environmental externalities may originate in restricted access to information and technology, demonstrating that (i) information has a similar effect as an environmental tax and (ii) knowledge and technology transfers have an impact comparable to that of subsidies for research in green technology.}, language = {en} } @techreport{MarcusSiedlerZiebarth2021, type = {Working Paper}, author = {Marcus, Jan and Siedler, Thomas and Ziebarth, Nicolas R.}, title = {The Long-Run Effects of Sports Club Vouchers for Primary School Children}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {34}, issn = {2628-653X}, doi = {10.25932/publishup-50897}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-508978}, pages = {72}, year = {2021}, abstract = {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.}, language = {en} } @techreport{Eydam2021, type = {Working Paper}, author = {Eydam, Ulrich}, title = {The Distributional Implications of Climate Policies Under Uncertainty}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {33}, issn = {2628-653X}, doi = {10.25932/publishup-50895}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-508950}, pages = {53}, year = {2021}, abstract = {Promoting the decarbonization of economic activity through climate policies raises many questions. From a macroeconomic perspective, it is important to understand how these policies perform under uncertainty, how they affect short-run dynamics and to what extent they have distributional effects. In addition, uncertainties directly associated with climate policies, such as uncertainty about the carbon budget or emission intensities, become relevant aspects. We study the implications of emission reduction schemes within a Two-Agent New-Keynesian (TANK) model. This quantitative exercise, based on data for the German economy, provides various insights. In the light of frictions and fluctuations, compared to other instruments, a carbon price (i.e. tax) is associated with lower volatility in output and consumption. In terms of aggregate welfare, price instruments are found to be preferable. Conditional on the distribution of revenues from climate policies, quantity instruments can exert regressive effects, posing a larger economic loss on wealth-poor households, whereas price instruments are moderately progressive. Finally, we find that unexpected changes in climate policies can induce substantial aggregate adjustments. With uncertainty about the carbon budget, the costs of adjustment are larger under quantity instruments.}, language = {en} } @techreport{FelfeKocherRaineretal.2021, type = {Working Paper}, author = {Felfe, Christina and Kocher, Martin and Rainer, Helmut and Saurer, Judith and Siedler, Thomas}, title = {More Opportunity, More Cooperation?}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {32}, issn = {2628-653X}, doi = {10.25932/publishup-50864}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-508643}, pages = {63}, year = {2021}, abstract = {Inequality of opportunity, particularly when overlaid with socioeconomic, ethnic, or cultural differences, may limit the scope of cooperation between individuals. A central question, then, is how to overcome such obstacles to cooperation. We study this question in the context of Germany, by asking whether the propensity of immigrant youth to cooperate with native peers was affected by a major integration reform: the introduction of birthright citizenship. Our unique setup exploits data from a large-scale lab-in-the-field experiment in a quasi-experimental evaluation framework. We find that the policy caused male, but not female, immigrants to significantly increase their cooperativeness toward natives. We show that the increase in out-group cooperation among immigrant boys is an outcome of more trust rather than a reflection of stronger other- regarding preferences towards natives. In exploring factors that may explain these behavioral effects, we present evidence that the policy also led to a near-closure of the educational achievement gap between young immigrant men and their native peers. Our results highlight that, through integration interventions, governments can modify prosocial behavior in a way that generates higher levels of efficiency in the interaction between social groups.}, language = {en} } @techreport{GraeberSchikora2021, type = {Working Paper}, author = {Graeber, Daniel and Schikora, Felicitas}, title = {Hate is too great a burden to bear}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {31}, issn = {2628-653X}, doi = {10.25932/publishup-50797}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-507972}, pages = {53}, year = {2021}, abstract = {Against a background of increasing violence against non-natives, we estimate the effect of hate crime on refugees' mental health in Germany. For this purpose, we combine two datasets: administrative records on xenophobic crime against refugee shelters by the Federal Criminal Office and the IAB-BAMF-SOEP Survey of Refugees. We apply a regression discontinuity in time design to estimate the effect of interest. Our results indicate that hate crime has a substantial negative effect on several mental health indicators, including the Mental Component Summary score and the Patient Health Questionnaire-4 score. The effects are stronger for refugees with closer geographic proximity to the focal hate crime and refugees with low country-specific human capital. While the estimated effect is only transitory, we argue that negative mental health shocks during the critical period after arrival have important long-term consequences. Keywords: Mental health, hate crime, migration, refugees, human capital.}, language = {en} }