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This study analyses the relationship between informal on-the-job training and turnover of new hires.

We analyze the relationship between informal on-the-job training and turnover of new hires. To this end, we use unique survey data about different aspects of informal co-worker training and link it to both firm-level and individual-level administrative data.

We find that informal training is negatively associated with turnover of new hires six months after entering the firm. However, this relationship becomes smaller and statistically weaker after 12 months.

Further heterogeneity analysis reveals a trade-off after one year, as onboarding can, to some extent, contribute to increased retention in firms with a lower wage premium and thereby help to mitigate costly worker turnover in these firms.

Joint work with Didier Fouarge and Carolin Linckh.

This study investigates how mentoring programs can be successfully scaled to transform the education system in Germany.

The shortage of skilled workers is a central challenge for the German labor market – 18% of young adults (20-34 years) do not have any occupational degree, and this proportion is up to twice as high for those from disadvantaged backgrounds.

One promising approach to tackle this challenge is through individual mentoring programs. The project team investigates how mentoring programs can be successfully scaled to transform the education system in Germany and promote social equality. Whether, and to what extent, such programs have a positive impact is crucial to the successful design of societal transformation processes. The research team is cooperating with a leading mentoring provider and conducting a randomized controlled trial with 3,000 disadvantaged young people to analyze the causal effects of mentoring. We plan to examine four key areas of scale-up: recruitment of mentors, general equilibrium effects, replacement of high-cost matching methods with machine learning, and the horizontal expansion of mentoring to vocational schools and apprentices.

The results will provide both scientific and practical insights into optimal technologies for rolling out interventions that serve societal transformation and the promotion of equal opportunities.

This paper studies the real effects of monetary policy on firms' labor adjustment.

This paper studies the real effects of monetary policy on firms' labor adjustment. Using detailed bank data together with administrative firm and worker data for Germany, we find that firms reduce employment in response to contractionary monetary policy.

We show that this employment reduction results from a relative decline in inflows rather than outflows. Inflows fall in particular for low-wage workers, whereas firms retain high-wage workers. Outflows for transitions to unemployment increase, while employment-to-employment outflows falls.

We interpret this as evidence for labor hoarding. Using variation in the bank exposure to monetary policy, we show that these results are driven by the exposure of the firm to the bank-lending channel.

This study examines the relationship between local income inequality and the centre bias.

We examine the relationship between local income inequality / local income levels on the one hand, and the “centre bias” on the other. The latter refers to people’s misconception of being in the middle of the national income distribution, rather than at its more extreme ends.

Local income distributions shape perceptions of inequality because co-residents are a reference group that affects the availability of opportunities for upward and downward social comparison. Theoretically, we outline four mechanisms that could link higher and lower local income inequality and income levels to residents' perceptions of their own relative income position (exposure vs. segregation, contrast vs. assimilation). Empirically, we link geo-referenced survey data to external datasets containing information on income inequality and income levels in respondents' home municipalities. Results suggest that higher local inequality is associated with a lower “centre bias” for both poor and rich respondents, supporting an “exposure” mechanism.

With respect to poorer versus richer municipalities, we find that only by tendency, either group estimates their position in the national income distribution to be somewhat higher. However, this evidence in favor of the “assimilation” mechanism is weak.

This study is about prevalence, perceived costs and consequences of sexual harassment (SH) in German workplaces.

We study the prevalence, perceived costs and consequences of sexual harassment (SH) in German workplaces. We first use a discrete choice experiment to estimate workers' willingness to pay (WTP) for workplaces without a history of known SH cases and preventive firm measures. Women, particularly early in their careers, display the highest WTP. Preventive measures significantly increase the attractiveness of workplaces, even when there is a history of SH.

Motivated by these results, we then document SH experiences using new data from the Linked Personnel Panel (LPP) and the IAB-OPAL online panel. SH is widespread: 20 percent of employees have either experienced SH at work personally or in their close work environment. Women are affected significantly more often than men. Women are also less likely to trust that leadership will respond appropriately to reported cases, and this lack of trust correlates with higher experienced incidence rates. Firms with active complaint procedures and preventive measures report greater employee awareness and more open discussion of SH. Taken together, our findings provide a strong economic rationale for preventive policies.

This study evaluates the Education Maintenance Allowance in England.

We evaluate the Education Maintenance Allowance, a large conditional cash transfer that paid teenagers from lower-income backgrounds up to $3,200 per year to remain in full-time education beyond the compulsory school-leaving age.

Exploiting the program's staggered rollout in England, we find that it increased education participation and reduced crime. However, we find no improvements in test scores, no effect on qualifications beyond the lowest level, and a small negative effect on labour market outcomes up to age 30. A key channel appears to be delayed labour market entry without offsetting gains in human capital.

This study shows us that the city-size wage premium is larger for low-skilled than for high-skilled workers in Peru.

We use individual geocoded data from Peru and document that the city-size wage premium is larger for low-skilled than for high-skilled workers, in contrast with most developed countries. We interpret this evidence using a model of location choice with private amenity goods and non-homothetic preferences.

Skilled workers enjoy higher incomes and devote a higher expenditure share to amenity goods, such as private schools or upper-class neighborhoods. The supply of these amenities is subject to a fixed cost, and only sufficiently large cities have enough demand to offer them. Thus, skilled workers demand a higher wage premium to live in small cities, and the returns to working in a large city are smaller for them than for their unskilled counterparts. Our quantitative exercises indicate that the mechanism accounts for two-thirds of the gap in the city-size wage premium between high-skilled and low-skilled workers.

joint with Andrii Parkhomenko and Daniel Velásquez-Cabrera

This study rationalizes intuition and evidence altogether using a nonsequential search model.

Employers hire more selectively between heterogeneous productivity workers when applicants' queues are longer. Consistently, CPS data reveal a positive and concave relation between unemployment rates and wage inequality.

We rationalize intuition and evidence altogether using a nonsequential search model in which selective hiring stretches out the right tail of the wage distribution and compresses the left one. Using GMM-estimated parameters, we show that mean worker productivity distribution shifts are consistent with the evidence.

Welfare analysis suggests that regressive taxation may enhance efficiency because expected good matches stimulate vacancies, creating a positive externality for other job seekers.

(joint work with Alessandra Pizzo)

This study is about the Increase in Refugees to Germany by Using the German Socio-Economic Panel and local district-level administrative data.

In 2015–16, Germany experienced a rapid and controversial increase in refugees that varied substantially across German districts. This increase provides unique leverage for analyzing how fractionalization, threat, and contact shape the consequences of immigration and ethnolinguistic heterogeneity.

Using the German Socio-Economic Panel and local district-level administrative data on refugee shares, we innovatively focus on within-person/within-district change in six exclusionary beliefs and behaviors. We demonstrate a two-level cross-cutting process that integrates threat and contact theory but contradicts fractionalization theory.

As the refugee share increased nationally, concerns about immigration and Far Right party support increased. However, district-level refugee shares significantly reduced concerns about immigration and Far Right party support. Also, rising district-level refugee shares are not associated with concerns about social cohesion, trust, residential moves, and subjective fair tax rates. While districts with fewer refugees drove the national-level threat, rising district-level refugee shares reduced or did not heighten exclusionary beliefs and behaviors.

The presentation focuses on the relevance of the labour market in strategies of people living in poverty securing their livelihood.

With the reproach of ‘dependency’, the receipt of welfare benefits is given a pejorative connotation, whereas securing one’s livelihood through paid work is seen as the epitome of ‘independence’ (Fraser/Gordon 1994). However, the assumption that receiving welfare benefits reduces work incentives has been disproved. Research has shown that employment continues to be an important goal for the long-term unemployed and poor (Dörre et al. 2013; Shildrick et al. 2012; Patrick 2017). Yet, access to the labour market is often difficult for people living in poverty for a variety of reasons such as health impairments, unpaid care responsibilities or lack of educational qualifications. When they do find work, it is mostly in precarious jobs with working conditions that are harmful to their health, leading to insecurity and, consequently, other forms of dependency.

Based on an ongoing research project on the welfare production of people living in poverty, the presentation focuses on the relevance of the labour market in their strategies of securing their livelihood: How do they position themselves in the face of the alternative of 'welfare dependency' and the insecurities of the labour market? It will be analysed how their labour market strategies develop and change in the context of individual biographies as well as labour market and welfare state conditions. The data include three interview waves with 40 poor households in Switzerland. Four standpoints with regard to welfare production were taken into account, which also imply different labour market positions: Working poor, who forego welfare benefits; single parents with limited availability for paid work; migrants, whose educational qualifications are often not recognised; and old-age pensioners, who are exempted from the obligation to work.

The findings suggest that particularly migrants without recognised formal qualifications pursue professional plans linked to the goal of social advancement and accept almost any full-time job in the low-wage sector. For single mothers, reconciling paid work with caring responsibilities is crucial, often leading them into fragmented work arrangements with no prospects for advancement. Lone mothers living on social assistance accept adverse working conditions in order to comply with the social norm of working, even if this does not significantly improve their standard of living, as they have to hand over most of their wages to the welfare office. For about half of the sample, labour market opportunities are reduced over the life course due to health impairments. A small number of cases deliberately refuse available employment opportunities in order to realise alternative life plans or roles, while at the same time refusing welfare benefits.

The presentation focuses on interviewees’ labour market strategies and examines the work and employment forms into which they lead them: regular low-wage work, marginal employment in private households, gig work, self-employment and various forms of informal work. It also looks at strategies beyond conventional employment, such as investing in cryptocurrencies, trading second-hand goods or subletting rooms.