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Veranstaltungsreihe: IAB-Colloquium (en)

The discussion series “Labour Market and Occupational Research (IAB-Colloquium zur Arbeitsmarkt- und Berufsforschung)” is a forum where primarily external researchers present the results of their work and discuss these with experts from IAB. Practitioners from the political, administrative and business fields are naturally also welcome.

Students often face incentives to reach performance goals, for instance, to receive a scholarship, enter a college, or be hired for a job.

Students often face incentives to reach performance goals, for instance, to receive a scholarship, enter a college, or be hired for a job. This paper uses a field experiment to study how incentives to reach performance goals affect students, whether the effects vary for students at different parts of the performance distribution, and whether allowing students to choose their own goal improves their performance. We find that incentives backfire: students offered incentives perform worse than their control counterparts.

These negative effects are mainly driven by mismatched goals: the negative treatment effects are concentrated among low-ability students who are assigned a high goal and among students with high aspirations who are assigned a low goal. The effects are also negative but not statistically significant from zero when students are allowed to choose their own goal. Our results show that incentives for performance goals can harm students' performance, especially among students whose goals are mismatched.

My presentation will cover results from two research projects on gender inequality in life courses and later life financial well-being in Germany.

My presentation will cover results from two research projects on gender inequality in life courses and later life financial well-being in Germany, which both rely on linked survey-administrative data. The first study examines how the life courses of couples in East and West Germany are associated with women’s income in later life using multichannel sequence analysis. By applying a couple perspective, we overcome the individualistic approach in most previous research analysing women’s old-age income. Detailed monthly information on spouses’ employment and earnings trajectories from age 20 to 50 for the birth cohorts 1925–1965 stems from SHARE-RV, a data linkage of the administrative records of the German public pension insurance with the Survey of Health, Ageing and Retirement in Europe (SHARE).

Seven clusters of couples’ life courses are identified and linked to women’s individual income in later life. By means of a cohort comparison, a polarization in dual-earner and male-breadwinner type clusters is identified. The former increasingly diverge into successful female-breadwinner constellations and those with both partners in marginalized careers. The latter polarize between persistent male-breadwinner constellations and those in which women increase their labour market engagement. Second, I will introduce first results from the project "Life Course, Assets and Retirement Income in East and West Germany". It examines gender-specific differences in the interplay of employment histories and the accumulation of wealth comparing East and West Germany. Data basis is the SOEP-RV that links the German Socio-Economic Panel (SOEP) survey to respondents’ Deutsche Rentenversicherung (German Pension Insurance) records.

Joint work with: Babette Bühler, Clara Overweg, Andreas Weiland

This study, investigates firm side responses to generous parental leave mandates.

In this study, we investigate firm side responses to generous parental leave mandates. Our primary focus is on firms’ adjustments in the gender and age composition of their workforce. To identify these effects, we use employer-employee matched data from Norway, and deploy a Bartik-type instrument exploiting variation in exposure and shifts across firms due to a series of expansionary reforms of the duration of paid parental leave. We find that in response to longer parental leave related absence, firms increase demand for young female employees but at lower wages. Heterogeneity analyses reveal that this is particularly the case in the private sector. We also document some positive effects on firm performance measured by investment and productivity. Increased part-time work by young women, and overtime hours by older workers emerge as important mechanisms explaining our results.

Our findings suggest that both small and large firms have successfully adapted to young women’s work interruptions linked to longer parental leave, an issue that has so far been overlooked in labor markets.

Big Data and the analysis thereof is considered of increasing importance, not only for big (tech) companies.

Big Data (BD) and the analysis thereof (i.e., Big Data Analytics, BDA) is considered of increasing importance, not only for big (tech) companies but also for small/medium-sized companies and, in particular, for new ventures. Despite or precisely due to its generally presumed relevance, the question arises whether applying BDA leads to better firm performance. Based on a large, representative sample of 3,700 German start-ups, we specifically study the adoption of BDA among start-ups and analyze its economic effects using various short- and longer-term performance measures. We show that start-ups adopting BDA significantly differ from non-adopters regarding their founders' age, education, team composition, and experience. Accounting for these differences, we then investigate the effect of adopting BDA on the new ventures' operating costs, sales, profits, survival rate, and (employee) growth. Our findings show that using BDA does not lead to a competitive advantage in terms of the classical short-term performance measures but is rather associated with greater sales/profit uncertainty, higher (personnel) costs, and a higher probability of failure. Yet, the increased risk of adopting BDA is at the same time compensated by a prospect for higher excess performance -- BDA-adopting start-ups perform significantly better than their peers at the 90%-quantile -- as well as by better expected longer-term performance, as measured by the start-ups' growth and by their ability to secure Venture Capital (VC). Our findings support the concept of a few Schumpeterian Entrepreneurs who adopt technology at the frontier of innovation and found high-risk start-ups with the prospect of high rewards.

A proposal for an occupation-specific end-of-life and late-life perspective on retirees.

Retirement marks a significant life transition, signaling the end of one's active work engagement and the beginning of a new phase of life. In the best-case scenario post-retirement life is characterized by increased time spend with friends and family, and a purpose in life that is perceived as meaningful. The reduced work load should be associated with improved health, because sources of physical and psychological stress should have far less impact. However, reality paints a different picture: The research on retirement shows a lot variation in retirement experiences, financial well-being, mental and physical health, social engagement, and overall life satisfaction.
The importance of pre-retirement occupations on individuals' lives cannot be overstated. However, the impact of occupations on people’s lives does not end with their retirement. Hence, I will propose a new perspective on employment and occupations by focusing on the retirees’ late life and end of life. In my presentation I will provide the theoretical foundations, why occupations (should) have a lasting impact. I will present a data source with which such analyses could be done and discuss outcome variables of interest. Examples for occupation-specific outcomes of interest are: years of life remaining after retirement, years in good health after retirement, years spend in loneliness, wealth, poverty, depression, political attitudes, decrease in cognitive capabilities, social networks, free-time activities, volunteering, housing, life satisfaction, etc.
From a policy perspective, understanding how different occupations influence post-retirement lives can inform retirement planning initiatives and social safety nets as well as occupation-specific training and safety regulations. On an individual level, insights gained from such research can assist individuals in making informed decisions about their vocational aspirations, careers, planned changes of occupations, retirement age, and financial preparations.

Exploiting prospective data on a cohort born in 1958 we estimate the gender wage gap over the life-course between age 23 and 63, departing from the literature in two ways.

Most studies estimating the gender wage gap rely on linear regression of log hourly earnings.  Estimates often condition on potentially endogenous regressors such as labour market experience and family formation.  Exploiting prospective data on a cohort born in 1958 we estimate the gender wage gap over the life-course between age 23 and 63, departing from the literature in two ways.  First, we use matching estimators which are rarely used in the literature.  Like regression analyses matching relies on observed data to recover the effect of gender on earnings, but by explicitly considering the issue of common support it is more transparent in its treatment of men as counterfactuals for women.  We examine the importance of the common support issue for the size of the gender wage gap.  Second, we condition on pre-labour market variables to avoid conditioning on endogenous choice variables, such as family formation, which are made, in part, with knowledge regarding one’s potential earnings.  We argue our data are well-suited to the task because they contain a wide array of prospective data collected at birth, then at ages 7, 11 and 16, which might conceivably confound estimates of the GWG.  In contrast to findings in the literature in which the regression-adjusted GWG is considerably smaller than the raw gap, we find differences in log hourly mean earnings between men and women are of roughly similar size and, in some cases, wider than raw gaps conditioning on pre-labour market variables.  This is the case whether we use matching or linear estimation techniques. However, the PSM estimated GWG is above the raw gap when cohort members are in their 40s, 50s and 60s.  The implication is that women have pre-labour market traits which reduce their earnings later in life relative to men.  The gap follows an inverted-u shape over the life-course, reaching its maximum of around. .45 log points at age 42, after which it begins to decline, though it remains large among cohort members in their 60s.

Joint work with: Francesca Foliano, Heather Joshi, Bozena Wielgoszewska and David Wilkinson

In this study, we examine how the same vacating opportunity translates differently for male and female full-time workers.

In this study, we examine how the same vacating opportunity translates differently for male and female full-time workers. By utilizing matched employer-employee data from Germany, our empirical approach leverages 30,000 unforeseen worker deaths spanning from 1980 to 2016 which enables us to explore how firms react to exogenous vacancies. We find that when a position becomes vacant, female replacements have starting wages that are 20 log points lower compared to their male counterparts. Even after considering the pre-hire wage of replacement workers, half of this gap persists. The gender disparity in opportunities cannot be attributed to workload redistribution among other coworkers. Over time, the gap tends to widen on average and remains stable even for those who remain employed full-time in the subsequent five years after being hired.​

This lecture is about how artificial intelligence can be used to reduce friction in markets.

We explore how Artificial Intelligence can be leveraged to help frictional markets to clear. We design a collaborative-filtering machine-learning job recommender system that uses job seekers' click history to generate relevant personalised job recommendations. We deploy it at scale on the largest online job board in Sweden, and design a clustered two-sided randomised experiment to evaluate its impact on job search and labour-market outcomes. Combining platform data with unemployment and employment registers, we find that treated job seekers are more likely to click and apply to recommended jobs, and have 0.7 percent higher employment within the 6 months following first exposure to recommendations. At the job-worker pair level, we document that recommending a vacancy to a job seeker increases the probability to work at this workplace by 10 percent. We propose a decomposition exercise of the net employment effects into three channels. The most important channel corresponds to the increase in the number of applications due to recommendations (first channel), partly offset by the lower conversion into employment of marginal applications (second channel). Congestion effects (third channel) are not a significant contributor to the overall effect. We also find larger employment effects when recommended vacancies are less popular, and for recommendations that broaden search further away in geographical and occupational distance.

We study how online job search advice affects the job search strategies and labor market outcomes of unemployed workers.

We study how online job search advice affects the job search strategies and labor market outcomes of unemployed workers. In a large-scale field experiment, we provide job seekers with vacancy information and occupational recommendations on an online dashboard. A two-stage randomized design with regionally varying treatment intensities allows us to account for treatment spillovers. Our results show that online advice is highly effective when the share of treated workers is relatively low: in regions where less than less than 50% of job seekers are exposed to treatment, working hours and earnings of treated job seekers increase significantly in the year after the intervention. At the same time, we find substantial negative spillovers on other treated job seekers for higher treatment intensities, resulting from increased competition between treated job seekers who apply for similar vacancies.

This paper questions the design of job recommender systems (RS).

This paper questions the design of job recommender systems (RS). We argue that state of the art ML-based algorithmic recommendations aimed at identifying a hiring score from past successful matches do not always result in improved outcomes for job seekers (JS). This is because first, the objectives of these recommendations do not align with the ones of the JS and second, they are usually generated independently of each other, without considering competition. Using a theoretical model of a two-sided market with an application stage, we discuss the needs that RS should meet. We then show that the ML-based hiring score, from which recommendations are typically derived, is only one of the necessary ingredients to meet these needs. Additionally, a matching score between JS and job offer profiles must be considered, and the two should be combined to form a criterion that reflects the expected utility. Our empirical analysis confirms this quantitatively matters, using the RS designed as part of a long-term project in collaboration with the French Public Employment Service. This project leverages extensive and detailed data on applicants, firms, and past job searches. Moreover, we discuss how optimal transport can be leveraged to design RS that avoid congestion, viewing the recommendations as a collective problem rather than a series of individual programs.