Using rich German linked employer-employee data and endogenous switching regression models, I show that large firms and firms with a high export share or a low proportion of fixed-term workers provide higher wage growth for low-wage workers. While having many low-paid co-workers dampens the wage...

Several empirical studies find that worker inflows from more productive or otherwise superior firms increase hiring firms' productivity. We conduct a similar analysis for Germany, using a unique linked employer-employee data set, and ranking sending and hiring establishments by their median...

This paper deals with the measurement of motives for foreign direct investment (FDI). Due to a lack of information, several indirect measures exist in order to classify multinational firms into the two main types of FDI. While vertical foreign direct investment (VFDI) refers to the international...

Labor flows across industries reallocate resources and diffuse knowledge among economic activities. However, surprisingly little is known about the structure of such inter-industry flows. How freely do workers switch jobs among industries? Between which pairs of industries do we observe such...

We review the literature on firm-level drivers of labor market inequality. There is strong evidence from a variety of fields that standard measures of productivity - like output per worker or total factor productivity - vary substantially across firms, even within narrowly-defined industries....

One of the key issues in economics is the explanation of unemployment and its variation across different economies. Modern mainstream macroeconomics refers to the effects of financial crises and to institutional structures and their variation across countries. However, unemployment within the...

In this paper I build a North-South model of international trade, economic growth and search-frictional unemployment in the North. Growth is driven by a process of creative destruction in the North followed by imitation in the South. I study the effects of intellectual property rights protection...

Unemployment insurance agencies may combat moral hazard by punishing refusals to apply to assigned vacancies. However, the possibility to report sick creates an additional moral hazard, since during sickness spells, minimum requirements on search behavior do not apply. This reduces the ex ante...

In den vergangenen Jahren ist eine intensive Diskussion in Politik, Wissenschaft, Wirtschaft und Gesellschaft um die Wirkungen der Digitalisierung auf die Arbeitswelt entstanden. Von dieser Entwicklung wird ein teils tiefgreifender Einfluss auf den Einsatz menschlicher Arbeit erwartet....

Recent research suggests that employment in young firms is more negatively impacted during economic downturns than employment in incumbent firms. This questions the effectiveness of policies that promote entrepreneurship to fight crises. We complement prior research that is mostly based on...