Dr Daniel Fackler

Dr Daniel Fackler
Current Position

since 1/15

Head of the Research Group Firm Dynamics and Employment Outcomes

Halle Institute for Economic Research (IWH) – Member of the Leibniz Association

since 12/14

Economist in the Department of Structural Change and Productivity

Halle Institute for Economic Research (IWH) – Member of the Leibniz Association

Research Interests

  • firm entry and exit
  • empirical labour economics
  • applied microeconometrics

Daniel Fackler joined the Department of Structural Change and Productivity in December 2014. His research focuses on empirical labour economics.

Daniel Fackler earned a diploma and doctoral degree from Friedrich-Alexander Universität Erlangen-Nürnberg.

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Dr Daniel Fackler
Dr Daniel Fackler
Mitglied - Department Structural Change and Productivity
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Publications

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Do Start-ups Provide Employment Opportunities for Disadvantaged Workers?

Daniel Fackler Michaela Fuchs Lisa Hölscher Claus Schnabel

in: Industrial and Labor Relations Review, forthcoming

Abstract

This article compares the hiring patterns of start-ups and incumbent firms to analyze whether start-ups offer relatively more job opportunities to disadvantaged workers. Using administrative linked employer–employee data for Germany that provide the complete employment biographies of newly hired workers, the authors show that young firms are more likely than incumbents to hire applicants who are older, foreign, or unemployed, or who have unstable employment histories, arrive from outside the labor force, or were affected by a plant closure. Analysis of entry wages shows that penalties for these disadvantaged workers, however, are higher in start-ups than in incumbent firms. Therefore, even if start-ups provide employment opportunities for certain groups of disadvantaged workers, the quality of these jobs in terms of initial remuneration appears to be low.

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Does Extended Unemployment Benefit Duration Ameliorate the Negative Employment Effects of Job Loss?

Daniel Fackler Jens Stegmaier Eva Weigt

in: Labour Economics, forthcoming

Abstract

We study the effect of job displacement due to bankruptcies on earnings and employment prospects of displaced workers and analyse whether extended potential unemployment benefit duration (PBD) ameliorates the negative consequences of job loss. Using German administrative linked employer-employee data, we find that job loss has long-lasting negative effects on earnings and employment. Displaced workers also more often end up in irregular employment relationships (part-time, marginal part-time employment, and temporary agency work) than their non-displaced counterparts. Applying a regression discontinuity approach that exploits a three months PBD extension at the age threshold of 50 we find hardly any effects of longer PBD on labour market outcomes of displaced workers.

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Plant-level Employment Development before Collective Displacements: Comparing Mass Layoffs, Plant Closures and Bankruptcies

Daniel Fackler Steffen Müller Jens Stegmaier

in: Applied Economics, No. 50, 2018

Abstract

This article analyzes the development of employment levels and worker flows before bankruptcies, plant closure without bankruptcies and mass layoffs. Utilizing administrative plant-level data for Germany, we find no systematic employment reductions prior to mass layoffs, a strong and long-lasting reduction prior to closures, and a much shorter shadow of death preceding bankruptcies. Employment reductions in closing plants, in contrast to bankruptcies and mass layoffs, do not come along with increased worker flows. These patterns point to an intended and controlled shrinking strategy for closures without bankruptcy and to an unintended collapse for bankruptcies and mass layoffs.

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Working Papers

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Explaining Wage Losses after Job Displacement: Employer Size and Lost Firm Rents

Daniel Fackler Steffen Müller Jens Stegmaier

in: IWH Discussion Papers, No. 32, 2017

Abstract

Why does job displacement, e.g., following import competition, technological change, or economic downturns, result in permanent wage losses? The job displacement literature is silent on whether wage losses after job displacement are driven by lost firm wage premiums or worker productivity depreciations. We therefore estimate losses in wages and firm wage premiums. Premiums are measured as firm effects from a two-way fixed-effects approach, as described in Abowd, Kramarz, and Margolis (1999). Using German administrative data, we find that wage losses are, on average, fully explained by losses in firm wage premiums and that premium losses are largely permanent. We show that losses in wages and premiums are minor for workers displaced from small plants and strongly increase with pre-displacement firm size, which provides an explanation for the large and persistent wage losses that have been found in previous studies mostly focusing on displacement from large employers.

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Identifying Bankruptcies in German Social Security Data

Daniel Fackler Eva Hank Steffen Müller Jens Stegmaier

in: FDZ-Methodenreport, No. 10, 2017

Abstract

Many empirical studies about firm exits point out that it is important to distinguish between different types of closures, e.g., voluntary and involuntary liquidations. This report describes how exits due to bankruptcies can be identified in the German Establishment History Panel (BHP). In contrast to other closures, bankruptcies can be unambiguously regarded as indica-tion for economic failure and can therefore be interpreted as involuntary exits.

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Who Buffers Income Losses After Job Displacement? The Role of Alternative Income Sources, the Family, and the State

Daniel Fackler Eva Hank

in: IWH Discussion Papers, No. 28, 2016

Abstract

Using survey data from the German Socio-Economic Panel (SOEP), this paper analyses to what extent alternative income sources, reactions within the household context, and redistribution by the state attenuate earnings losses after job displacement. Applying propensity score matching and fixed effects estimations, we find high individual earnings losses after job displacement and only limited convergence. Income from selfemployment slightly reduces the earnings gap and severance payments buffer losses in the short run. On the household level, we find substantial and rather persistent losses in per capita labour income. We do not find that increased labour supply by other household members contributes to the compensation of the income losses. Most importantly, our results show that redistribution within the tax and transfer system substantially mitigates income losses of displaced workers both in the short and the long run whereas other channels contribute only little.

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