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- Fachgruppe Volkswirtschaftslehre (21) (remove)
Paid parental leave schemes have been shown to increase women’s employment rates but to decrease their wages in case of extended leave duration. 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 mix on long-run earnings of mothers, we use a difference-in-differences 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 mothers with high pre-birth earnings. Nevertheless, we find a positive long-run effect on earnings for mothers in this group. This effect cannot be explained by changes in the selection of working mothers, working hours or changes in employer stability. 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 pre-birth earnings, however, we do not find beneficial long-run effects of this parental leave reform.
Predicting entrepreneurial development based on individual and business-related characteristics is a key objective of entrepreneurship research. In this context, we investigate whether the motives of becoming an entrepreneur influence the subsequent entrepreneurial development. In our analysis, we examine a broad range of business outcomes including survival and income, as well as job creation, and expansion and innovation activities for up to 40 months after business formation. Using the self-determination theory as conceptual background, we aggregate the start-up motives into a continuous motivational index. We show – based on a unique dataset of German start-ups from unemployment and non-unemployment – that the later business performance is better, the higher they score on this index. Effects are particularly strong for growth-oriented outcomes like innovation and expansion activities. In a next step, we examine three underlying motivational categories that we term opportunity, career ambition, and necessity. We show that individuals driven by opportunity motives perform better in terms of innovation and business expansion activities, while career ambition is positively associated with survival, income, and the probability of hiring employees. All effects are robust to the inclusion of a large battery of covariates that are proven to be important determinants of entrepreneurial performance.
Charitable giving
(2023)
We investigate how different levels of information influence the allocation decisions of donors who are entitled to freely distribute a fixed monetary endowment between themselves and a charitable organization in both giving and taking frames. Participants donate significantly higher amounts, when the decision is described as taking rather than giving. This framing effect becomes smaller if more information about the charity is provided.
Many phenomena of high relevance for economic development such as human capital, geography and climate vary considerably within countries as well as between them. Yet, global data sets of economic output are typically available at the national level only, thereby limiting the accuracy and precision of insights gained through empirical analyses. Recent work has used interpolation and downscaling to yield estimates of sub-national economic output at a global scale, but respective data sets based on official, reported values only are lacking. We here present DOSE — the MCC-PIK Database Of Sub-national Economic Output. DOSE contains harmonised data on reported economic output from 1,661 sub-national regions across 83 countries from 1960 to 2020. To avoid interpolation, values are assembled from numerous statistical agencies, yearbooks and the literature and harmonised for both aggregate and sectoral output. Moreover, we provide temporally- and spatially-consistent data for regional boundaries, enabling matching with geo-spatial data such as climate observations. DOSE provides the opportunity for detailed analyses of economic development at the subnational level, consistent with reported values.
Income inequality and taxes
(2023)
Economic literature offers several distinct explanations for the raising income inequality observed in several countries. In the debate about the causes of inequality a growing strand of research focuses on the effects of taxation on income inequality. We contribute to this literature by providing a systematic empirical account of the relationship between income inequality and personal income taxation (PIT) for a set of countries over the period 1981–2005. In order to take alternative explanations into account and to isolate the effects of tax progressivity, we include a wide range of control variables. We address potential reverse causality between inequality and PIT by using the variation in tax schedules of neighbouring countries. Our results confirm a statistically significant negative association between the progressivity of PIT and income inequality. Overall, we find that especially the average and the marginal tax rate have the potential to reduce income inequality. This finding is qualitatively robust across various different empirical specifications.
Atwood analyzes the effects of the 1963 U.S. measles vaccination on long-run labor market outcomes, using a generalized difference-in-differences approach. We reproduce the results of this paper and perform a battery of robustness checks. Overall, we confirm that the measles vaccination had positive labor market effects. While the negative effect on the likelihood of living in poverty and the positive effect on the probability of being employed are very robust across the different specifications, the headline estimate—the effect on earnings—is more sensitive to the exclusion of certain regions and survey years.
House price expectations
(2023)
This study examines short-, medium-, and long-run price expectations in housing markets. At the heart of our analysis is the combination of data from a tailored in-person household survey, past sale offerings, satellite imagery on developable land, and an information treatment (RCT). As novel finding, we show that price expectations show no evidence for momentum-effects in the long run. We also do not find much evidence for behavioural biases in expectations related to individual housing tenure decisions. Confirming existing findings, we find momentum-effects in the short-run and that individuals, to a limited extend, use aggregate price information to update local expectations. Lastly, we provide suggestive evidence corroborating existing findings that expectations are relevant for portfolio choice.
The COVID-19 pandemic and related closures of day care centres and schools significantly increased the amount of care work done by parents. There has been much speculation over whether the pandemic increased or decreased gender equality in parental care work. Based on representative data for Germany from spring 2020 and winter 2021 we present an empirical analysis that shows that although gender inequality in the division of care work increased to some extent in the beginning of the pandemic, it returned to the pre-pandemic level in the second lockdown almost nine months later. These results suggest that the COVID-19 pandemic neither aggravated nor lessened inequality in the division of unpaid care work among mothers and fathers in any persistent way in Germany.
SOEP-LEE2
(2023)
This article presents the new linked employee-employer study of the Socio-Economic Panel (SOEP-LEE2), which offers new research opportunities for various academic fields. In particular, the study contains two waves of an employer survey for persons in dependent work that is also linkable to the SOEP, a large representative German annual household panel (SOEP-LEE2-Core). Moreover, SOEP-LEE2 includes two waves of self-employed surveys based on self-employed in the SOEP-Core (SOEP-LEE2-Self-employed) and three additional representative employer surveys, independent of the SOEP in terms of sampling employers (SOEP-LEE2-Compare). Survey topics include digitalisation and cybersecurity, human capital formation, COVID-19, and human resource management. Here, we describe the content, survey design, and comparability of the different datasets in the SOEP-LEE2 to potential users in different disciplines of research.
Reformen bei Elterngeld und Ehegattensplitting könnten gleichstellungspolitische Impulse setzen
(2023)
Germany is characterised by large gender gaps in the labour market. Both the gender pay gap as well as the gender gap in working hours are among the highest in Europe. Family policy reforms such as increasing the parental leave period that is ear-marked for fathers as well as reducing the high marginal tax rates for secondary earners resulting from the joint taxation of married couples with full income splitting (“Ehegattensplitting”) could help to mitigate the existing gender gaps in the labour market. These reforms are also paramount due to the increasing labour scarcity stemming from the demographic change.