New Publications

Sozialer Fortschritt: "Non-Compliance With The Compulsory Employment Quota Of Severely Disabled People - An Empirical Investigation Of Potential Causes At The German Federal State Level" (Borah, Hahn, Knabe)

21.01.2020 -

New publication by Melanie Borah, Kathrin Hahn and Andreas Knabe:

This paper examines factors that can explain substantial differences in the employment rate of several disabled people between the German federal states from 2003 to 2015. It puts special emphasis on the situation in Saxony-Anhalt, which had the lowest employment rate of disabled persons nationwide during this time. The multivariate statistical analysis provides evidence that the degree of compliance with the compulsory employment quote is determined by socio-demographic rather than economic characteristics of the states. Within the specified model, the main determinant of the employment rate appears to be the share of (registered) severely disabled people in the population.

 

The publication can be found here.

sozialer fortschritt1

The Review of Income and Wealth: "Reference Income Effects in the Determination of Equivalence Scales Using Income Satisfaction Data" (Knabe, Borah, Keldenich)

09.12.2019 -

New Publication by Andreas Knabe, Melanie Borah und Carina Keldenich:

We estimate household equivalence scales, i.e. the needs of additional adults and children relative to a single adult, using income satisfaction data from the German Socio-Economic Panel. We extend previous studies applying this approach by taking reference income into account. This allows separating needs-based from reference effects in the determination of income satisfaction. We show that this adjustment helps to overcome a bias causing an overestimation of adults' and an underestimation of children's needs-based equivalence weights. Our results indicate that controlling for income comparisons substantially increases children's equivalence weight relative to that of adults.

 

The publication can be found here.

Review of Income and Wealth

Oxford Economic Papers: "How Much Does Others' Protection Matter? Employment Protection, Future Labour Market Prospects and Well-Being" (Knabe, Lücke)

04.08.2019 -

New Publication by Andreas Knabe and Christine Lücke, (online first):

Employment protection legislation (EPL) is an important determinant of workers’ perceived future labour market prospects as well as their subjective well-being. Recent studies indicate that it is not only a worker’s own level of protection, but also the employment protection of other workers that matters for individual prospects and well-being. We contribute to this literature by examining how such cross-effects on well-being are mediated by a workers’ perceived risk of job loss and future employability. We apply a structural model to data from the Third Wave of the European Quality of Life Survey, combined with summary indices from the OECD Employment Protection Database. Our results are indicative of cross-effects. Stricter protection for permanent workers (stricter regulation on the length and number of renewals of fixed-term contracts) is associated with lower (higher) perceived employability for both permanent workers and fixed-term workers. In addition, stricter protection for permanent workers is positively related to fixed-term workers’ perceived risk of job loss. We do find some evidence that EPL has significant indirect (cross-)effects on life satisfaction via the mediators. There are no indications for direct, non-mediated effects.

 

The publication can be found here.

Oxford Economic Papers

Demography: "Looking Back in Anger? Retirement and Unemployment Scarring" (Hetschko, Knabe, Schöb)

30.04.2019 -

New Publication by Clemens Hetschko, Andreas Knabe und Ronnie Schöb:

Unemployment affects future working conditions and job security negatively, thus reducing life satisfaction after reemployment. These employment-related scars of unemployment should not matter anymore when a person has retired. Using German panel data, we analyze unemployed persons’ transition into retirement to test whether unemployment leaves scars beyond working life and thus for reasons that are not employment-related. We find that involuntary unemployment between the last job and retirement causes a loss in life satisfaction after retirement. People who influenced or even initiated unemployment, by contrast, show no scarring. The scarring effect goes beyond what can be explained by the income loss originating from reduced pensions. It shows up independently of whether the unemployment spell directly before retirement was the only experience of unemployment in a person’s career, or whether she had also experienced unemployment at earlier times. We do not find evidence that early retirement or involuntary retirement are the reasons why formerly unemployed retirees display unemployment scarring.

 

The publication can be found here.

demography

Labour: "When Protection Puts You in Jeopardy -- How Removing Small-Business Clauses Affects Employment Duration" (Lücke)

19.02.2018 -

New publication by Christine Lücke:

In a 2004 reform, Germany exempted small firms from dismissal protection. This paper estimates the effects of dismissal protection on the risk of leaving the establishment, taking advantage of the fact that workers employed before the amendment maintained their previous dismissal protection. Utilizing administrative linked employeremployee data, the results hint at a higher risk during the first 6 months in a job and a lower risk thereafter, if dismissal protection is provided. The estimated survivor curves suggest that even after 5 years the protecting effect of dismissal protection did not compensate the initially adverse effect during the first 6 months of tenure.

 

The publication can be found here.

LABOUR Review of Labour Economics and Industrial Relations

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