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Archives: IAB-Veranstaltungen

Social science research demonstrates that dispersal policies and restrictions on the freedom of residence have inhibited refugees’ socio-economic integration, presumably because such policies prevent refugees from moving to places where they can employ their skills most fruitfully. However, studies of refugees’ actual residential choices provide little evidence that good economic prospects attract refugees, and some even suggest that refugees often move to deprived cities with frail labor markets. The combination of negative effects of residence restrictions and emerging evidence of disadvantaging secondary migration forms what we call the ‘refugee mobility puzzle’. In this study, we aim at unpacking this puzzle by analyzing the inner-German migration patterns of recent refugees. Specifically, we ask: What attracts refugees to deprived areas, and can their seemingly unfortunate residential choices be understood as moves to opportunity and increased prospects of labor market integration after all? Empirically, we draw on the IAB-BAMF-SOEP Survey of Refugees and track the location of more than 2,000 refugee respondents who were exogenously allocated a place of residence and subsequently became free to move. Based on linear-probability discrete choice models across all German counties and postcodes, we confirm that refugees tend to move to areas with high unemployment. We show that major attractors like housing availability, co-ethnic networks, and service-oriented labor markets are clustered in areas with high unemployment. Taken together, our results complicate recent critiques of dispersal policies and restrictions. On the one hand, our findings show that seemingly disadvantaging relocations into high unemployment areas can conceal potentially improved economic perspectives in relevant labor markets. On the other hand, refugees’ search for affordable housing may turn into an unintended lock-in factor in the mid- and long-run.

This paper studies the interplay between how much workers value workplace flexibility, whether they have such amenities, and how the presence of amenities affects their wages. To overcome the challenge of eliciting quantitative measures of willingness to pay (WTP) at the individual level, we propose the use of dynamic choice experiments, a method which we call the Bayesian Adaptive Choice Experiment (BACE). We implement this method to collect data on the joint distribution of wages, work arrangements, and WTP for different forms of flexibility. We then introduce and estimate a model in which workers may face different prices for job amenities depending on their productivity, extending the Rosen (1986) model of compensating differentials. The model captures key patterns in the data, including (i) the relationship between wages and having amenities, (ii) inequality in workplace amenities across the earnings distribution even when workers value these amenities similarly, and (iii) the tradeoffs across different forms of flexibility. We use the estimates to explore the welfare consequences of workers facing different amenity prices.

Social disparities in track choices are a well-known mechanism for the intergenerational reproduction of inequality. School guidance may help reducing such disparities by narrowing information gaps and by reducing the family influence on students’ decision making. We investigate the potential equalizing role of guidance programs by analysing an intervention carried out in Italy, where students are tracked at age 14 and teacher recommendations are non-binding. The intervention took place in 2018 in the city of Turin and involved 40% of all eighth-grade students, shortly before their transition from comprehensive to tracked education. The students attended four two-hour sessions designed to provide them with information about the educational system and related job market opportunities, and to raise their awareness of their aptitudes and inclinations. We expected the programme to be of particular benefit to low socio-economic status (SES) and migrant students and thus to reduce social gaps in track choices. We adopted a mixed-method research design: with quantitative analyses based on a combination of propensity-score-matching and differences-in-differences techniques, we compared the outcomes of comparable students from the 2017 and 2018 cohorts who were or were not exposed to the intervention in order to assess its impact on inequality; additionally, we use qualitative non-participatory observation to unveil the actual content and implementation of the program and the behaviour of the key actors. We find that while the program contributed to reducing indecision, probably by compelling students to reflect more carefully about their decisions during this crucial transition, it did not have any major effect on social inequalities. Results from the qualitative analysis help us shed light on the mechanisms at play behind this lack of effect. In particular, the heavy emphasis placed on current achievement records, dropout risks, and (short-term) labour-market outcomes may counteract the equalizing potential of the program by pushing low-SES and migrant students towards vocational tracks.

We use French data over the 1994-2013 period to study how imports of industrial robots affect firm-level outcomes. Guided by a simple model, we develop various empirical strategies to identify the causal effects of robot adoption. Our results suggest that, while demand shocks generate a positive correlation between robot imports and employment at the firm level, exogenous exposure to automation leads to job losses. We also find that robot exposure increases productivity and some evidence that it may increase the relative demand for high-skill professions.

We analyze the effects of large-scale local public infrastructure investments on economic development, exploiting the infrastructure shock following when Brazil was awarded the 2014 FIFA World Cup. We place particular emphasis on effect heterogeneity with respect to the type, location, temporal evolution, and costs and benefits of the investments. Using novel data on monthly night light luminosity at the municipal district level as a proxy for economic activity, we apply Difference-in-Differences and event studies for estimation. Overall, we find strongly positive impacts both in the short and longer run. However, a closer examination reveals that effects are larger and longer-lasting for transport infrastructure as opposed to sports infrastructure, and they are more pronounced in smaller areas. Importantly, we quantify significant negative spatial spillovers. Factoring them in, we still find positive net benefits of transport infrastructure investments two years after the tournament.

While many countries are discussing substantial increases in the minimum wage, policy makers lack a comprehensive analysis of the macroeconomic and distributional consequences of raising the minimum wage. This paper investigates how employment, output and worker welfare respond to increases in the minimum wage beyond observable levels -- both in the short- and long run. To that end, I incorporate endogenous job search effort, differences in employment levels, and a progressive tax-transfer system into a search-matching model with worker and firm heterogeneity. I estimate my model using German administrative and survey data. The model replicates the muted employment response, as well as the reallocation effects in terms of productivity and employment levels documented by reduced form research on the German introduction of a federal minimum wage in 2015.  Simulating the model, I find that long-run employment increases slightly until the minimum wage is equal to 60% of the full-time median wage (Kaitz index) as higher search effort offsets lower vacancy posting. In addition, raising the minimum wage reallocates workers towards full-time jobs and high-productivity firms. Total hours worked and output peak at Kaitz indices of 73% and 79%. However, policy makers face an important inter-temporal trade-off as large minimum wage hikes lead to substantial job destruction, unemployment and recessions in the short-run. Finally, I show that raising the minimum wage largely benefits men. For women, who often rely on low-hours jobs, the disutility from working longer hours outweighs the utility of higher incomes.

The presentation offers an overview about the new data service of the Research Data Centre of the Federal Office for Migration and Refugees (BAMF-FDZ). The BAMF-FDZ gives access to register and survey data for migration and integration research. The presentation will introduce the available and future data sets and discuss advantages and limitations. In addition, the application procedure is also explained.

The vocational education system in Central and Eastern European countries (CEEC) is mainly school-based, with schools directly linked to large industrial conglomerates in communist times. Since the transition to a market economy it has been an uphill battle to connect vocational schools and newly emerging firms for workplace-based training. In particular, the region’s many small firms struggle to offer high-quality training, given the required investments and manpower. Yet, partly inspired by investors from German-speaking countries with their strong tradition of dual vocational education workplace-based training innovations have been evolving in increasing numbers in the region. What are the success stories so far and what are hurdles for rolling out dual educational training more systematically? What can players from different countries learn from each other?

Civil society has played an important role in meeting the challenges of refugee migration in recent years. This policy report studies the importance of civic engagement for the integration of refugees by employing several waves of the IAB-BAMF-SOEP survey data. Using the density of newly established associations at the county level as a measure of civic engagement of a region, we exploit regional differences in civic engagement in order to estimate its association with individual integration outcomes of refugees. We find that in regions with particularly high levels of civic engagement, refugees have significantly more frequent contact to Germans, higher life satisfaction and better German language skills. This correlation is robust to controlling for the local population structure, economic strength and labor market situation. In terms of language acquisition, women and refugees with a low level of education benefit the most from high civic engagement. Moreover, refugees with university degrees find significantly better-paying jobs in areas with higher civic engagement. However, no direct correlation could be established between civic engagement and the likelihood that refugees are active in the labor market. Nonetheless, the results suggest that support from civil society translates into improved access to government benefits. Our findings stress that local civic engagement is an important complement to public assistance services and policy makers should give a high priority to team up with civil society to improve refugees' integration outcomes.

The joined Graduate School (GradAB) of the IAB and the FAU invites young researchers who study topics in labor economics and sociology to its 13th interdisciplinary PhD workshop “Perspectives on (Un-) Employment”. The event provides an opportunity for graduate students to present their ongoing research and receive feedback from senior scholars who work at the forefront of labor market research. We seek theoretical and empirical contributions to the field of labor market research. Your paper may cover topics such as:

  • Unemployment, labor supply and labor demand
  • Inequality, poverty and discrimination
  • Evaluation of labor market institutions and policies
  • Wages and productivity
  • Occupations
  • Education, qualification and job tasks
  • Gender and family
  • Migration and international labor markets
  • Technological change and digitization
  • The impact of climate change/COVID-19 on the labor market
  • Methodology of labor market research