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Early Child Care, Maternal Labor Supply, and Gender Equality: A Randomized Controlled Trial?
Henning Hermes, Marina Krauß, Philipp Lergetporer, Frauke Peter, Simon Wiederhold
IWH Discussion Papers, No. 14, 2024
Abstract
We provide experimental evidence that enabling access to universal early child care increases maternal labor supply and promotes gender equality among families with lower socioeconomic status (SES). Our intervention offers information and customized help with child care applications, leading to a boost in child care enrollment among lower-SES families. 18 months after the intervention, we find substantial increases in maternal full-time employment (+160%), maternal earnings (+22%), and household income (+10%). Intriguingly, the positive employment effects are not only driven by extended hours at child care centers, but also by an increase in care hours by fathers. Gender equality also benefits more broadly from better access to child care: The treatment improves a gender equality index that combines information on intra-household division of working hours, care hours, and earnings by 40% of a standard deviation, with significant increases in each dimension. For higher-SES families, we consistently observe negligible, insignificant treatment effects.
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Application Barriers and the Socioeconomic Gap in Child Care Enrollment
Henning Hermes, Philipp Lergetporer, Frauke Peter, Simon Wiederhold
IWH Discussion Papers, No. 13, 2024
Abstract
Why are children with lower socioeconomic status (SES) substantially less likely to be enrolled in child care? We study whether barriers in the application process work against lower-SES children — the group known to benefit strongest from child care enrollment. In an RCT in Germany with highly subsidized child care (N = 607), we offer treated families information and personal assistance for applications. We find substantial, equity-enhancing effects of the treatment, closing half of the large SES gap in child care enrollment. Increased enrollment for lower-SES families is likely driven by altered application knowledge and behavior. We discuss scalability of our intervention and derive policy implications for the design of universal child care programs.
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Inflation Concerns and Green Product Consumption: Evidence from a Nationwide Survey and a Framed Field Experiment
Sabrina Jeworrek, Lena Tonzer
IWH Discussion Papers, No. 10, 2024
Abstract
Promoting green product consumption is one important element in building a sustainable society. Yet green products are usually more costly. In times of high inflation, not only budget constraints but also the fear that prices will continue to rise might dampen green product consumption and, hence, limit the effectiveness of exerted efforts to promote sustainable behaviors. To test this suggestion, we conducted a Germany-wide survey with almost 1,200 respondents, followed by a framed field experiment (N=500) to confirm causality. In the survey, respondents’ stated “green” purchasing behavior is, as to be expected, positively correlated with concerns about climate change. It is also negatively correlated with concerns about future inflation and energy costs, but after controlling for observable characteristics such as income and educational level only the correlation with concerns about future prices remains significant. This result is driven by individuals with below-median environmental attitude. In the framed field experiment, we use the priming method to manipulate the saliency of inflation concerns. Whereas sizably relaxing the budget constraint (i.e., by 50 percent) has no impact on the share of organic products in participants’ baskets, the priming significantly decreases the share of organic products for individuals with below-median environmental attitude, similar to the survey data.
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Import Shocks and Voting Behavior in Europe Revisited
Annika Backes, Steffen Müller
IWH Discussion Papers, No. 8, 2024
Abstract
We provide first evidence for the long-run causal impact that Chinese imports to European regions had on voting outcomes and revisit earlier estimates of the short-run impact for a methodological reason. The fringes of the political spectrum gained ground many years after the China shock plateaued and, unlike an earlier study by Colantone and Stanig (2018b), we do not find any robust evidence for a short-run effect on far-right votes. Instead, far-left and populist parties gained in the short run. We identify persistent long-run effects of import shocks on voting. These effects are biased towards populism and, to a lesser extent, to the far-right.
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Der Börsengang und die interne Organisation des Unternehmens
Daniel Bias, Benjamin Lochner, Stefan Obernberger, Merih Sevilir
Wirtschaft im Wandel, No. 1, 2024
Abstract
In diesem Beitrag wird untersucht, wie Unternehmen ihre Organisation anpassen, wenn sie erstmalig an die Börse gehen (
initial public offering, IPO
). Im Zuge des Börsengangs wandeln sich Unternehmen in eine hierarchischere Organisation um und verstärken die Aufsicht durch das Management. Organisatorische Funktionen in den Bereichen Rechnungswesen, Finanzen, Informationstechnologie und Personalwesen gewinnen an Bedeutung. Sie tauschen einen großen Teil ihrer Belegschaft und fast ihr gesamtes Management aus, um ihr Humankapital an die neue Organisation anzupassen. Die neue Organisation erleichtert interne Versetzungen und Beförderungen. Insgesamt ist das Unternehmen durch den Börsengang einem Wandel unterworfen, der die Abhängigkeit des Unternehmens von einzelnen Beschäftigten verringert und den Produktionsprozess effizient organisiert.
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Does Information about Inequality and Discrimination in Early Child Care Affect Policy Preferences?
Henning Hermes, Philipp Lergetporer, Fabian Mierisch, Guido Schwerdt, Simon Wiederhold
IWH Discussion Papers, No. 2, 2024
Abstract
We investigate public preferences for equity-enhancing policies in access to early child care, using a survey experiment with a representative sample of the German population (n ≈ 4, 800). We observe strong misperceptions about migrant-native inequalities in early child care that vary by respondents’ age and right-wing voting preferences. Randomly providing information about the actual extent of inequalities has a nuanced impact on the support for equity-enhancing policy reforms: it increases support for respondents who initially underestimated these inequalities, and tends to decrease support for those who initially overestimated them. This asymmetric effect leads to a more consensual policy view, substantially decreasing the polarization in policy support between under- and overestimators. Our results suggest that correcting misperceptions can align public policy preferences, potentially leading to less polarized debates about how to address inequalities and discrimination.
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Income Shocks, Political Support and Voting Behaviour
Richard Upward, Peter Wright
IWH Discussion Papers, No. 1, 2024
Abstract
We provide new evidence on the effects of economic shocks on political support, voting behaviour and political opinions over the last 25 years. We exploit a sudden, large and long-lasting shock in the form of job loss and trace out its impact on individual political outcomes for up to 10 years after the event. The availability of detailed information on households before and after the job loss event allows us to reweight a comparison group to closely mimic the job losers in terms of their observable characteristics, pre-existing political support and voting behaviour. We find consistent, long-lasting but quantitatively small effects on support and votes for the incumbent party, and short-lived effects on political engagement. We find limited impact on the support for fringe or populist parties. In the context of Brexit, opposition to the EU was much higher amongst those who lost their jobs, but this was largely due to pre-existing differences which were not exacerbated by the job loss event itself.
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Frühkindliche Betreuung erhöht den Arbeitsmarkterfolg von Müttern ohne Abitur
Henning Hermes, Marina Krauß, Philipp Lergetporer, Frauke Peter, Simon Wiederhold
Wirtschaft im Wandel, No. 3, 2023
Abstract
In den meisten Ländern wirkt sich die Geburt eines Kindes negativ auf den Arbeitsmarkterfolg von Müttern aus, insbesondere bei Müttern mit niedrigerem Schulabschluss. In diesem Beitrag werden die Ergebnisse eines Feldexperiments in Deutschland vorgestellt, in dem Familien bei der Bewerbung für einen Platz in einer Kindertagesstätte (Kita) unterstützt wurden. Die Ergebnisse zeigen, dass der verbesserte Zugang zu frühkindlicher Betreuung die Wahrscheinlichkeit erhöht, dass Mütter ohne Abitur in Vollzeit arbeiten, und deren Haushaltseinkommen steigert. Um den Arbeitsmarkterfolg von Müttern zu verbessern, sollte die Politik den Zugang zu frühkindlicher Betreuung erleichtern und die Zahl der Kita-Plätze noch weiter erhöhen.
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Cultural Norms and Corporate Fraud: Evidence from the Volkswagen Scandal
Iftekhar Hasan, Felix Noth, Lena Tonzer
Journal of Corporate Finance, October 2023
Abstract
We examine a corporate governance role of local culture via its impact on consumer behavior following corporate scandals. Our proxy for culture is the presence of local Protestantism. Exploiting the unexpected nature of the Volkswagen (VW) diesel scandal in September 2015, we show that new registrations of VW cars decline significantly in German counties with a Protestant majority following the VW scandal. Further survey evidence shows that, compared to Catholics, Protestants respond significantly more negatively to fraud but not to environmental issues. Our findings suggest that the enforcement culture in Protestantism facilitates penalizing corporate fraud.
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Herding Behavior and Systemic Risk in Global Stock Markets
Iftekhar Hasan, Radu Tunaru, Davide Vioto
Journal of Empirical Finance, September 2023
Abstract
This paper provides new evidence of herding due to non- and fundamental information in global equity markets. Using quantile regressions applied to daily data for 33 countries, we investigate herding during the Eurozone crisis, China’s market crash in 2015–2016, in the aftermath of the Brexit vote and during the Covid-19 Pandemic. We find significant evidence of herding driven by non-fundamental information in case of negative tail market conditions for most countries. This study also investigates the relationship between herding and systemic risk, suggesting that herding due to fundamentals increases when systemic risk increases more than when driven by non-fundamentals. Granger causality tests and Johansen’s vector error-correction model provide solid empirical evidence of a strong interrelationship between herding and systemic risk, entailing that herding behavior may be an ex-ante aspect of systemic risk, with a more relevant role played by herding based on fundamental information in increasing systemic risk.
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