Research

Articles in Refereed Journals

Labor Market Polarization, Job Tasks, and Monopsony Power (with Ronald Bachmann and Hanna Frings). Journal of Human Resources, 57(S), S11-S49.

Abstract: Using a semistructural approach based on a dynamic monopsony model, we examine to what extent workers performing different job tasks are exposed to different degrees of monopsony power and whether these differences in monopsony power have changed over the last 30 years. We find that workers performing mostly nonroutine cognitive tasks are exposed to a higher degree of monopsony power than workers performing routine or nonroutine manual tasks. Job-specific human capital and nonpecuniary job characteristics are the most likely explanations for this result. We find no evidence that labor market polarization has increased monopsony power over time.

• Ökonomenstimme (in German): Verändert der technologische Wandel die Monopsonmacht auf dem Arbeitsmarkt?

Working Papers

Labor Market Frictions and Spillover Effects from Publicly Announced Sectoral Minimum Wages. [Current Version]

Abstract: This paper analyzes the horizontal spillover effects of Germany's first sectoral minimum wage. Using a difference-in-differences estimation, I examine the impact of the public announcement and introduction of the minimum wage on sub-minimum wage workers in related jobs outside the minimum wage sector, defined using employment flows. I find an increase in wages and job-to-job transitions for sub-minimum wage workers in related jobs. The spillover effects are driven by workers who move to better-paying establishments, have limited labor market experience, and are closely linked to the minimum wage sector through former coworkers who were directly impacted by the minimum wage.

• Handelsblatt (in German): RWI-Studie: Baumindestlohn führt auch in anderen Branchen zu höherer Bezahlung 

The Role of Within-Occupation Task Changes in Wage Development (with Ronald Bachmann, Colin Green, and Arne Uhlendorff). Ruhr Economic Paper No. 975. 

Abstract: We examine how changes in task content over time condition occupational wage development. Using survey data from Germany, we document substantial heterogeneity in within-occupational changes in task content. Combining this evidence with administrative data on individual employment outcomes over a 25-year period, we find important heterogeneity in wage penalties amongst initially routine intensive jobs. While occupations that remain (relatively) routine intensive generate substantial wage penalties, occupations with a decreasing routine intensity experience stable or even increasing wages. These findings cannot be explained by composition or cohort effects. 

• Frankfurter Allgemeine Sonntagszeitung (in German): Automatisierung der Arbeit. Ein Hoch auf die Routinejobs. 

Coworker Networks from Student Jobs: A Flying Start at Labor Market Entry? (with Friederike Hertweck, Malte Sandner, and Ipek Yükselen). [Current Version]

Abstract: This paper analyzes the impact of college students’ coworker networks formed during student jobs on their labor market outcomes after graduation. For our analysis, we use novel data that links students’ administrative university records with their pre- and post-graduation employment registry data and their coworker networks. Our empirical strategy exploits variation in the timing and duration of student jobs, controlling for a variety of individual and network characteristics, as well as firm-by-occupation fixed effects, eliminating potential selection bias arising from non-random entry into student jobs and networks. The results show that students who work alongside higher-earning coworkers during their student jobs earn higher wages in their first post-graduation employment. Two key mechanisms appear to drive this effect: (1) sorting into higher-paying firms after graduation, facilitated by coworker referrals, and (2) enhanced field-specific human capital through exposure to skilled colleagues. However, the initial wage advantage from higher-earning coworker networks diminishes over time as students with worse networks catch up. Our findings contribute to the understanding of how early career networks shape labor market outcomes and facilitate a smoother transition from higher education to graduate employment.

• IAB-Forum (in German): Wer neben dem Studium mit den „richtigen“ Kollegen jobbt, kann die beruflichen Startchancen vielfach verbessern

Selected Work in Progress

Career Blocker (with Simon Trenkle)

Other Publications

RWI, IAW Tübingen and IZA Bonn (2020), Auswirkungen des gesetzlichen Mindestlohns auf Löhne und Arbeitszeiten (Effects of the statutory minimum wage on the wage structure and hours worked). Team: R. Bachmann, H. Bonin, B. Boockmann, G. Demir, R. Felder, I. Isphording, R. Kalweit, N. Laub, C. Vonnahme, C. Zimpelmann.

Bundesministerium für Arbeit und Soziales (BMAS) (Ed.), Kantar, IAB, IAW, IAQ, IZA and RWI (2021), Begleitevaluation der arbeitsmarktpolitischen Integrationsmaßnahmen für Geflüchtete – Schlussbericht. Forschungsbericht 587. BMAS: Berlin.