05.04.2023 • 9/2023
East German economy has come through energy crisis well so far – Implications of the Joint Economic Forecast Spring 2023 and new data for the East German economy
In 2022, the East German economy expanded by 3.0%, significantly stronger than the economy in West Germany (1.5%). The background is a more robust development of labour and retirement incomes. For 2023, the Halle Institute for Economic Research (IWH) forecasts a higher GDP growth rate of 1% in East Germany than in Germany as a whole (0.3%). The unemployment rate is expected to stagnate, with 6.8% in 2023 and 6.7% in the following year.
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The Gender Reveal: The Effect of Sons on Young Fathers’ Criminal Behavior and Labor Market Activities
Based on New Zealand’s administrative court charges data, we document child gender-specific differences in future criminal behavior of young fathers. The deterrent impact of having a son on the future likelihood of receiving convictions persists for as long as ten years post-childbirth. Utilizing population-wide monthly tax registers and Census data, we provide key insights into the role model hypothesis. We show that young fathers with a son have (i) a higher likelihood of being in employment, (ii) higher wages and salaries, (iii) lower benefit dependency, (iv) better qualification, and (v) a higher likelihood of being in a partnered relationship.
Mission, Motivation, and the Active Decision to Work for a Social Cause
Nonprofit and Voluntary Sector Quarterly,
The mission of a job affects the type of worker attracted to an organization but may also provide incentives to an existing workforce. We conducted a natural field experiment with 246 short-term workers. We randomly allocated some of these workers to either a prosocial or a commercial job. Our data suggest that the mission of a job has a performance-enhancing motivational impact on particular individuals only, those with a prosocial attitude. However, the mission is very important if it has been actively selected. Those workers who have chosen to contribute to a social cause outperform the ones randomly assigned to the same job by about half a standard deviation. This effect seems to be a universal phenomenon that is not driven by information about the alternative job, the choice itself, or a particular subgroup.
Gift-Exchange in Society and the Social Integration of Refugees: Evidence from a Field, a Laboratory, and a Survey Experiment
Journal of Economic Behavior and Organization,
Refugee integration requires broad support from the host society, but only a minority is actively engaged. Given that most individuals reciprocate kind behavior, we examine the idea that the proportion of supporters will increase as a reciprocal response to refugees’ contributions to society through volunteering. Our nationwide survey experiment shows that citizens’ intentions to contribute time and money rise significantly when they learn about refugees’ pro-social activities. However, we find a substantial heterogeneity in the observed treatment effects. Individuals with a high reciprocal inclination show higher willingness to contribute time, while individuals with a lower reciprocal inclination are ready to contribute money after learning about the refugees' good deeds. Information regarding the possibility to establish a mutual support relationship with the refugees does not generally increase the willingness to contribute time or money beyond the information on refugees’ general contributions to the society. We complement this investigation with experiments in the lab and the field that confirm our findings for actual behavior.
Do Digital Information Technologies Help Unemployed Job Seekers Find a Job? Evidence from the Broadband Internet Expansion in Germany
European Economic Review,
This paper studies effects of the introduction of a new digital mass medium on reemployment of unemployed job seekers. We combine data on high-speed (broadband) internet availability at the local level with German individual register data. We address endogeneity by exploiting technological peculiarities that affected the roll-out of high-speed internet. The results show that high-speed internet improves reemployment rates after the first months in unemployment. This is confirmed by complementary analyses with individual survey data suggesting that internet access increases online job search and the number of job interviews after a few months in unemployment.
Ehrenamtliches Engagement von Flüchtlingen zur Förderung sozialer Integration
Wirtschaft im Wandel,
Die soziale Integration von Flüchtlingen kann einen substanziellen Beitrag zu deren ökonomischer Integration leisten, häufig sind negative Einstellungen der Bevölkerung gegenüber ethnischen Minderheiten aber ein Schlüsselfaktor für Integrationsprobleme. Die Förderung ehrenamtlichen Engagements von Flüchtlingen könnte eine Lösung darstellen und
den Integrationsprozess positiv beeinflussen. Basierend auf den Daten dreier unterschiedlicher Experimente zeigt dieser Beitrag, dass Einheimische in höherem Maße bereit sind, die Integration von Flüchtlingen persönlich oder finanziell zu unterstützen, wenn sich Flüchtlinge an ihrem neuen Wohnort gesellschaftlich engagieren. Natürlich findet sich eine gewisse Heterogenität hinsichtlich der Neigung, eher persönlich oder eher finanziell zu unterstützen. Für die unterschiedlichsten Personengruppen gilt aber, dass ehrenamtliches Flüchtlingsengagement zumindest auf eine dieser beiden Optionen einen positiven Effekt ausübt.
Automation, Globalization and Vanishing Jobs: A Labor Market Sorting View
IZA Discussion Paper,
We show, theoretically and empirically, that the effects of technological change associated with automation and offshoring on the labor market can substantially deviate from standard neoclassical conclusions when search frictions hinder efficient assortative matching between firms with heterogeneous tasks and workers with heterogeneous skills. Our key hypothesis is that better matches enjoy a comparative advantage in exploiting automation and a comparative disadvantage in exploiting offshoring. It implies that automation (offshoring) may reduce (raise) employment by lengthening (shortening) unemployment duration due to higher (lower) match selectivity. We find empirical support for this implication in a dataset covering 92 occupations and 16 sectors in 13 European countries from 1995 to 2010.