New Publications

JITE: "Spillover Effects of Minimum Wages under Union Wage Bargaining"

25.09.2013 -

New publication by Marcus Dittrich and Andreas Knabe:

Empirical and experimental research suggests that minimum wages cause spillovers to wages higher up in the wage distribution, i.e., they may even raise wages that were already above the new minimum wage. In this paper, we analyze how these findings can be explained by theoretical wage bargaining models between unions and firms. While the Nash bargaining solution is unaffected by minimum wages below initially bargained wages, we show that such minimum wages can drive up wages - and be harmful to employment - when bargaining follows the Kalai-Smorodinsky solution.

The publication can be found here.


LABOUR: "Low-Wage Jobs - Springboard to High-Paid Ones?"

28.08.2013 -

New publication by Andreas Knabe and Alexander Plum:

The authors examine whether low-paid jobs have an effect on the occupational advancement probability of unemployed persons to obtain better-paid jobs in the future (stepping-stone effect). A previous version was awarded as best paper in the category Young Economists on the 24th Mondragone International Economic Seminar (Rome).


The publication is available here.
The discussion paper is available here.

LABOUR Review of Labour Economics and Industrial Relations

CESifo Working Paper Series: "Partnership, Gender Roles and the Well-Being Cost of Unemployment"

23.10.2012 -

New working paper by Andreas Knabe, Ronnie Schöb and Joachim Weimann:

The authors use the differences between life satisfaction and emotional well-being of employed and unemployed persons to analyze how a person’s employment status affects cognitive well-being. The results show that unemployment has a negative impact on cognitive, but not on affective well-being, which we interpret as a loss in identity utility. Living in a partnership strengthens the loss in identity utility of men, but weakens that of women. Unemployment of a person’s partner reduces the identity loss of unemployed men, but raises it for women. These results suggest that the unemployed’s feeling of identity is affected by traditional gender roles, while this does not seem to be the case for the affective part of their subjective well-being.

The publication can be found here.


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