Since Marshall (1890), it has been widely held in urban economic theory that cities ensure workers against the risk of unemployment by offering a larger pool of potential jobs. Using a large administrative panel data set on workers affected by firm closures, we examine whether positive effects...

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...

This paper studies the returns to regional mobility based on a sample of job-to-job transitions in Germany. Additionally, we provide evidence for the selection mechanisms into regional mobility and sorting into firms and matches. Using linked employer-employee data we estimate a wage...

The German workfare scheme ‘One-Euro-Jobs’ that provides additional jobs of public interest for welfare recipients has a number of different goals. One the one hand, One-Euro-Jobs are intended to increase the participants’ employment prospects in the medium term. On the other hand, they...

With the introduction of a new welfare benefit system in 2005, Germany implemented quite strict benefit sanctions for welfare recipients aged younger than 25 years. For all types of non-compliance except for missing appointments, their basic cash benefit is withdrawn for three months. A second...

Imposing benefit cuts to job seekers who do not comply with rules and requirements has become a commonly used enforcement device in unemployment insurance (UI) systems. This paper provides first estimates of how non-compliant job seekers react when confronted with a stricter enforcement regime....