Strukturwandel und Produktivität
Die Abteilung Strukturwandel und Produktivität untersucht Prozesse strukturellen Wandels, die beispielsweise durch Globalisierung oder technologische Neuerungen erzeugt werden können. Struktureller Wandel führt zu Aufschwung und Niedergang von Regionen, Wirtschaftszweigen und Betrieben und hat direkte Konsequenzen für die betroffenen Arbeitnehmer und Arbeitnehmerinnen. Wir erforschen die Auswirkungen strukturellen Wandels empirisch mit Hilfe mikroökonometrischer Verfahren. Die Abteilung stellt zudem das Sekretariat des Competitiveness Research Network (CompNet), einem Zentrum für Forschung und Politikberatung rund um die Themen Wettbewerbsfähigkeit und Produktivität. Sie koordiniert darüber hinaus MICROPROD (EU Horizon 2020).
Im Fokus unserer Arbeit stehen Produktivität, Innovationstätigkeit und Arbeitsmarktergebnisse wie zum Beispiel Beschäftigung und Lohnniveau. Ein besonderes Augenmerk liegt auf dem Transformationsprozess in Ostdeutschland. Diese wissenschaftlich und wirtschaftspolitisch relevanten Forschungsfragen werden durch die Abteilung im Forschungscluster "Institutionen und soziale Normen" sowie im Forschungscluster "Produktivität und Innovationen" analysiert.
Ten Facts on Declining Business Dynamism and Lessons from Endogenous Growth Theory
in: American Economic Journal: Macroeconomics, im Erscheinen
In this paper, we review the literature on declining business dynamism and its implications in the United States and propose a unifying theory to analyze the symptoms and the potential causes of this decline. We first highlight 10 pronounced stylized facts related to declining business dynamism documented in the literature and discuss some of the existing attempts to explain them. We then describe a theoretical framework of endogenous markups, innovation, and competition that can potentially speak to all of these facts jointly. We next explore some theoretical predictions of this framework, which are shaped by two interacting forces: a composition effect that determines the market concentration and an incentive effect that determines how firms respond to a given concentration in the economy. The results highlight that a decline in knowledge diffusion between frontier and laggard firms could be a significant driver of empirical trends observed in the data. This study emphasizes the potential of growth theory for the analysis of factors behind declining business dynamism and the need for further investigation in this direction.
Regional Effects of Professional Sports Franchises – Causal Evidence from Four European Football Leagues
in: Regional Studies, im Erscheinen
The locational pattern of clubs in four professional football leagues in Europe is used to test the causal effect of relegations on short-run regional development. The study relies on the relegation mode of the classical round-robin tournament in the European model of sport to develop a regression-discontinuity design. The results indicate small and significant negative short-term effects on regional employment and output in the sports-related economic sector. In addition, small negative effects on overall regional employment growth are found. Total regional gross value added remains unaffected.
Innovation Cooperation in East and West Germany: A Study on the Regional and Technological Impact
in: International Journal of Computational Economics and Econometrics, im Erscheinen
In this paper, we investigate the impact of regional and technological innovation systems on innovation cooperation. We develop an indicator applicable to regions, which demonstrates the relative regional impact on innovation cooperation. Applying this method to German patent data, we find that regional differences in the degree of innovation cooperation do not only depend on the technology structure of a region but also on specific regional effects. High-tech oriented regions, whether east or west, are not automatically highly cooperative regions. East German regions have experienced a dynamic development of innovation cooperation since re-unification in 1990. Their cooperation intensity remains higher than in West German regions.
Explaining Wage Losses after Job Displacement: Employer Size and Lost Firm Rents
in: Journal of the European Economic Association, im Erscheinen
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.
The Urban Wage Premium in Imperfect Labor Markets
in: The Journal of Human Resources, im Erscheinen
Using administrative data for West Germany, this paper investigates whether part of the urban wage premium stems from greater competition in denser labor markets. We show that employers possess less wage-setting power in denser markets. We further document that an important part of the observed urban wage premia can be explained by greater competition in denser labor markets.
Robot Adoption at German Plants
in: IWH-Diskussionspapiere, Nr. 19, 2020
Using a newly collected dataset of robot use at the plant level from 2014 to 2018, we provide the first microscopic portrait of robotisation in Germany and study the potential determinants of robot adoption. Our descriptive analysis uncovers five stylised facts concerning both extensive and, perhaps more importantly, intensive margin of plant-level robot use: (1) Robot use is relatively rare with only 1.55% German plants using robots in 2018. (2) The distribution of robots is highly skewed. (3) New robot adopters contribute substantially to the recent robotisation. (4) Robot users are exceptional along several dimensions of plant-level characteristics. (5) Heterogeneity in robot types matters. Our regression results further suggest plant size, low-skilled labour share, and exporter status to have strong and positive effect on future probability of robot adoption. Manufacturing plants impacted by the introduction of minimum wage in 2015 are also more likely to adopt robots. However, controlling for plant size, we find that plant-level productivity has no, if not negative, impact on robot adoption.
The East-West German Gap in Revenue Productivity: Just a Tale of Output Prices?
in: IWH-Diskussionspapiere, Nr. 14, 2020
East German manufacturers’ revenue productivity (value-added per worker) is some 8 (25) percent below West German levels, even three decades after German unification. Using firm-product-level data containing information on product quantities and prices, we analyse the role of product specialisation and reject the prominent ‚extended work bench hypothesis‘, stating a specialisation of Eastern firms in the intermediate input production as explanation for these sustained productivity differences. We decompose the East’s revenue productivity disadvantage into Eastern firms selling at lower prices and producing more physical output for given amounts of inputs within ten-digit product industries. This suggests that Eastern firms specialise vertically in simpler product varieties generating less consumer value but being manufactured with less or cheaper inputs. Vertical specialisation, however, does not explain the productivity gap as Eastern firms are physically less productive for given product prices, implying a genuine physical productivity disadvantage of Eastern compared to Western firms.
Labour Market Power and Between-Firm Wage (In)Equality
in: IWH-Diskussionspapiere, Nr. 13, 2020
This study investigates how labour market power shapes between-firm wage differences using German manufacturing sector data from 1995 to 2016. Over time, firm- and employee-side labour market power, defined as the difference between wages and marginal revenue products of labour (MRPL), increasingly moderated rising between-firm wage inequality. This is because small, low-wage, low-MRPL firms possess no labour market power and pay wages equal to or even above their MRPL, whereas large, high-wage, high-MRPL firms possess high labour market power and pay wages below their MRPL. These wage-MRPL differences grow over time and compress the firm wage distribution compared to the counterfactual competitive labour market scenario. Particularly for the largest, highest-paying, and highest-MRPL firms, wage-MRPL differences strongly increase over time. This allows these firms to generate increasingly large labour market rents while being active on competitive product markets, providing novel insights on why such “superstar firms” are profitable and successful.
Worker Participation in Decision-making, Worker Sorting, and Firm Performance
in: IWH-Diskussionspapiere, Nr. 11, 2020
Worker participation in decision-making is often associated with high-wage and high-productivity firm strategies. Using linked-employer-employee data for Germany and worker fixed effects from a two-way fixed effects model of wages capturing observed and unobserved worker quality, we find that establishments with formal worker participation via works councils indeed employ higher-quality workers. We show that worker quality is already higher in plants before council introduction and further increases after the introduction. Importantly, we corroborate previous studies by showing positive productivity and profitability effects even after taking into account worker sorting.
flexpaneldid: A Stata Toolbox for Causal Analysis with Varying Treatment Time and Duration
in: IWH-Diskussionspapiere, Nr. 3, 2020
The paper presents a modification of the matching and difference-in-differences approach of Heckman et al. (1998) for the staggered treatment adoption design and a Stata tool that implements the approach. This flexible conditional difference-in-differences approach is particularly useful for causal analysis of treatments with varying start dates and varying treatment durations. Introducing more flexibility enables the user to consider individual treatment periods for the treated observations and thus circumventing problems arising in canonical difference-in-differences approaches. The open-source flexpaneldid toolbox for Stata implements the developed approach and allows comprehensive robustness checks and quality tests. The core of the paper gives comprehensive examples to explain the use of the commands and its options on the basis of a publicly accessible data set.