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on Microeconomic European Issues |
| By: | Lieke Voorintholt (Institute for Labour Law and Industrial Relations in the European Union (IAAEU), Trier University); Annalisa Tassi (Research Institute for the Evaluation of Public Policies of the Bruno Kessler Foundation (FBK-IRVAPP)) |
| Abstract: | In recent decades, volunteering has expanded from completely unpaid work to the possibility of receiving a small (tax-free) monetary compensation for the activity performed, with the goal of stimulating these activities. Since the relationship between monetary compensation and prosocial behavior may differ from standard labor market settings, the effectiveness of monetary and tax incentives in this context is an empirical question. Using data from German income tax returns, this paper investigates the effects of changes in monetary compensations on the duration of voluntary work, donations, and market labor income of paid volunteers. Our empirical analysis leverages a German policy change from 2013 that increased the tax-free threshold for volunteer compensations. Following a difference-in-differences approach in combination with a duration model, we do not find evidence that affected volunteers change the number of years they spend in a certain volunteer position. Our results also show that the compensation increase has no spillover effects on labor earnings or donations. Combining our null findings and insights from our theoretical model, we suggest exploring non-incentive-based measures rather than higher compensations to stimulate paid volunteering. |
| Keywords: | Paid volunteering, volunteer duration, tax-free compensation, policy change, labor supply, donations |
| JEL: | D11 D12 D64 H24 J22 J38 |
| Date: | 2026–06 |
| URL: | https://d.repec.org/n?u=RePEc:iaa:dpaper:202605 |
| By: | Singhal, Karan (University of Luxembourg); Grabka, Markus (DIW Berlin); Sierminska, Eva (Luxembourg Institute of Socio-Economic Research (LISER)) |
| Abstract: | We study gender disparities in intergenerational wealth transfers in Germany over more than four decades, focusing on inheritances and inter vivos gifts. Using individual-level data from the Socio-Economic Panel (SOEP), we document persistent gaps: while women are in some cases more likely to report receiving an inheritance, men are more likely to receive gifts and obtain larger overall transfer amounts. These differences are not uniform. In West Germany, younger women face particularly large disadvantages in gifts, whereas no systematic gaps are observed in East Germany. We also show that transfers, particularly gifts, contribute to the gender wealth gap. Oaxaca–Blinder decompositions indicate that gifts account for a measurable share of the mean gap in 2019, and RIF decompositions re-veal that transfer amounts contribute to both explained and unexplained components across the wealth distribution. Despite gender-neutral inheritance law, our findings suggest that testamentary freedom and persistent social norms continue to generate unequal outcomes. Addressing these disparities is essential in preventing wealth transfers from reinforcing intergenerational and gender-based economic inequality. |
| Keywords: | inheritances, gift, gender, SOEP, wealth gap, RIF-regression |
| JEL: | D64 J16 |
| Date: | 2026–06 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18706 |
| By: | Till Köveker; Robin Sogalla |
| Abstract: | Carbon pricing policies are usually combined with compensation for exposed firms to prevent adverse competitiveness effects. In cap-and-trade systems, this carbon cost compen sation mostly occurs through free allocation of emission permits. Using an administrative panel of German manufacturing firms, this paper investigates how free allocation in the European Union Emissions Trading System affects firms’ emission reductions and competi tiveness. Leveraging a reform of free allocation rules in a continuous difference-in-differences design, we find that a reduction of freely allocated emission permits decreased firms’ emis sions and emission intensity. For firms deemed to be at risk of carbon leakage, our results suggest that this decrease is driven by energy efficiency improvements instead of outsourcing of emission-intensive production. On the other hand, we do not find statistically significant effects on firms’ employment, sales, value added, capital and exports-indicating that the reduction in free permits did not negatively affect firms’ competitiveness. |
| Keywords: | Cap and Trade, Permit Allocation, Industry Compensation, Greenhouse Gas Emissions, Competitiveness, Manufacturing Firms |
| JEL: | Q54 Q58 H23 D22 F18 |
| Date: | 2026–06 |
| URL: | https://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2025_756 |
| By: | Betancourt, Alejandro (Universidad Pontificia Comillas); Romero, José C. (Universidad Pontificia Comillas); Budría, Santiago (Universidad Nebrija) |
| Abstract: | While a growing body of research has analysed the determinants of energy poverty, less is known about its dynamic nature and about whether current support schemes adequately reach households experiencing multidimensional vulnerability. Using the 2020-2023 longitudinal data from the Spanish component of the EU-SILC, the paper estimates the extent of energy poverty persistence in Spain and assesses the protective role of the Bono Social -Spain’s main public support scheme for vulnerable energy consumers. The paper also simulates the potential impact of alternative cash-equivalent energy support. The results show strong inertia effects: households experiencing energy poverty in the previous period are 1.9 to 6.4 percentage points more likely to experience it again. We also document important limitations in the coverage and take-up of the Bono Social. Counterfactual simulations indicate that a modest annual energy support transfer of € 500 per household can substantially reduce energy poverty, with reductions ranging from 1.8 to 17.3 percentage points. These findings highlight the need for more differentiated and better-targeted policy interventions. |
| Keywords: | energy poverty, persistence, dynamic panel models, Bono Social, policy counterfactuals |
| JEL: | Q48 I32 I38 C33 |
| Date: | 2026–05 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18700 |
| By: | Alam, Afroza; Diegmann, André |
| Abstract: | This paper provides new causal evidence on how patent allowances affect firms and their employees based on quasi-random assignment of patent applications to examiners. Exploiting employer-employee records with newly linked German firm data and web-scraped patent documents, we show that patent-induced shocks reduce firm exit, improve productivity, and increase wages, with rent-sharing elasticities between 0.10 and 0.21. Wage gains are broadly observed across occupational tasks, with high heterogeneity: managers benefit disproportionately in publicly traded firms, whereas broader wage increases accrue to workers in non-traded firms. Our findings highlight the role of institutional features and firm organization in shaping how rents are shared. |
| Keywords: | firm performance, innovation, rent sharing, worker compensation |
| JEL: | D22 J31 O31 O34 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:iwhdps:341391 |
| By: | Pineda-Hernandez, Kevin (Free University of Brussels); Rycx, François (Free University of Brussels); Senterre, Thomas (ULB and UMONS); Volral, Melanie (UMONS) |
| Abstract: | Although educational attainment is known to moderate immigrant-native wage gaps, the role of the field of study remains largely unexplored. Drawing on detailed data for master's graduates in Belgium (1999-2016), we show that the immigrant-native wage gap narrows over two generations but persists in higher-paying fields (STEM, LEM), while disappearing in lower-paying ones. Wage decompositions reveal a small positive quantity effect (immigrants favour higher-paying fields), outweighed by a negative price effect (as returns to fields are lower for immigrants). This price effect halves across generations. Together, both effects explain 28-37% of the overall pay gap. Sensitivity tests refine these findings. |
| Keywords: | immigrant-native wage gap, first- and second-generation immigrants, field of study, matched employer-employee data |
| JEL: | I23 I24 I25 I26 J31 |
| Date: | 2026–06 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18728 |
| By: | Sona Badalyan |
| Abstract: | I study how delayed retirements reshape firms’ internal labor markets, leverag ing a German reform that raised women’s early retirement age by at least three years. The reform increased retention of older women and reduced both internal promotions and external hiring of younger coworkers. Spillovers are structured: promotion crowd-outs arise in thick internal labor markets with intense competi tion, while hiring declines are largest in thin external markets with high turnover costs. Crowd-out effects concentrate within jobcells, whereas coworkers in differ ent jobcells can benefit when retained older workers possess specific human capital. The evidence supports slot-constraint theories—augmented by firm-specific human capital mechanisms. |
| Keywords: | aging, internal labor markets, human capital, worker substitutability |
| JEL: | H55 J21 J23 J24 J26 J31 J63 M51 |
| Date: | 2026–06 |
| URL: | https://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2025_759 |
| By: | Rudmann, Mira Letitia |
| Abstract: | Diese Arbeit untersucht den Zusammenhang zwischen dem Migrationshintergrund und dem allgemeinen Gesundheitszustand in Deutschland auf Basis der Daten des European Social Surveys (2023). Mittels einer linearen und einer logistischen Regressionsanalyse wird gezeigt, dass Personen mit Migrationshintergrund der ersten Generation signifikant häufiger einen besseren allgemeinen Gesundheitszustand berichten als Personen ohne Migrationshintergrund, wenngleich der Effekt nur von geringem Ausmaß ist. Des Weiteren verliert er an Signifikanz, wenn für den sozioökonomischen Status kontrolliert wird. Für die zweite Generation konnte kein eigenständiger Effekt beobachtet werden. Gleichzeitig zeigt sich, dass Angehörige der zweiten Generation signifikant häufiger über Schwierigkeiten bei der Inanspruchnahme des Gesundheitssystems berichten. Dies ist nicht alleine durch den sozioökonomischen Status oder das Gesundheitsverhalten zu erklären, was potenziell auf Diskriminierung hindeuten könnte. Insgesamt bestätigen die Ergebnisse die Existenz des Healthy-Migrant-Effects in Deutschland. Sie zeigen jedoch auch, dass die gesundheitlichen Vorteile der ersten Generation durch soziale Benachteiligung abgeschwächt werden und in der nachfolgenden Generation verschwinden. Gleichzeitig weisen sie auf eine Benachteiligung der zweiten Generation im Gesundheitssystem hin. Der Gesamtzusammenhang wird durch eine Vielzahl, teils ambivalenter Faktoren beeinflusst. Die Befunde unterstreichen die Notwendigkeit weiterer Forschung und gesundheitspolitischer Maßnahmen zur Vermeidung gesundheitlicher Ungleichheiten. |
| Abstract: | This work examines the relationship between migration background and general health status in Germany based on data from the European Social Survey (2023). Using linear and logistic regression analysis, it is shown that first-generation migrants report better general health significantly more often than people without a migration background. However, the effect is small. Furthermore, it loses significance when controlling for socioeconomic status. No independent effect could be observed for the second generation. At the same time, it is evident that members of the second generation report difficulties in accessing the health care system significantly more often. This correlation cannot be explained by socio-economic status or health behaviour alone. This could potentially indicate discrimination. Overall, the results support the existence of the Healthy-Migrant-Effect in Germany. However, they also show that the health benefits of the first generation are weakened by social disadvantage and disappear in the subsequent generation. Simultaneously, they point to discrimination against second-generation immigrants in the healthcare system. They also show that the correlation is influenced by a variety of partly ambivalent effects. The findings emphasise the need for further research and health policy measures to prevent health inequalities in the long term. |
| Keywords: | Gesundheit, Migrationshintergrund, Healthy-Migrant-Effect, Ungleichheit, Health, Migration background, Healthy-Migrant-Effect, Inequality |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:udesoz:341635 |
| By: | Alam, Afroza; Diegmann, André |
| Abstract: | This paper provides new causal evidence on how patent allowances affect firms and their employees based on quasi-random assignment of patent applications to examiners. Exploiting employer-employee records with newly linked German firm data and web-scraped patent documents, it shows that patent-induced shocks reduce firm exit, improve productivity, and increase wages, with rent-sharing elasticities between 0.10 and 0.21. Wage gains are broadly observed across occupational tasks, with substantial heterogeneity: managers benefit dispro portionately in publicly traded firms, whereas broader wage increases accrue to workers in non-traded firms. The findings highlight the role of institutional features and firm organiza tion in shaping how rents are shared. |
| Keywords: | Innovation, Firm Performance, Worker Compensation, Rent Sharing |
| JEL: | O31 O34 J31 D22 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:341411 |
| By: | Baumann, Ursel; Cullen, Zöe; Faia, Ester; Ferrando, Annalisa; Perez-Truglia, Ricardo; Rariga, Judith |
| Abstract: | How well does innovation diffuse across geographic boundaries? To shed light on this question, we present a large-scale field experiment involving 3, 300 firms across twelve European Union (EU) countries. We elicit firms' perceptions of the share of similar firms in their own country that had invested in AI, as well as the corresponding share among similar firms in the three largest EU economies. We randomly provide half of the sample with accurate information about both domestic and foreign AI investment. We show that firms substantially underestimate competitors' current AI investment, both domestically and abroad, and that they update their expectations about competitors' future adoption in response to the information treatment. The treatment also causes a statistically significant increase in firms' own expected AI investment rate (p-value |
| Keywords: | Innovation |
| JEL: | O33 D22 C93 L21 |
| Date: | 2026–06 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:21601 |
| By: | Lutz Bellmann; Christian Dustmann; Bernd Fitzenberger |
| Abstract: | This paper examines the evolution, institutional structure, and current challenges of collective bargaining in Germany. Collective bargaining addresses labor market imperfections, redistributes productivity gains, and shapes working conditions. The German system is centered on industry-level agreements, complemented by firm-level agreements and voluntary adoption of industry-level bargaining outcomes by formally uncovered firms ("orientation"). It has historically supported cooperative labor-management relations, while allowing for flexibility during economic downturns. We document long-term declines in union density and bargaining coverage, partly mitigated by orientation. Moreover, coverage is lower among low-wage workers. We conclude by discussing the future of Germany's collective bargaining institutions in the context of structural economic change and the growing role of the statutory minimum wage, and draw comparison between Germany and the US. |
| Date: | 2026–06 |
| URL: | https://d.repec.org/n?u=RePEc:crm:wpaper:26171 |
| By: | Moeller, Jakob; Halla, Martin; Thomas, Tobias |
| Abstract: | We study the effect of pre-booked COVID-19 vaccination appointments using a na- tionwide campaign in Austria. Leveraging administrative microdata on more than 450, 000 initially unvaccinated adults, we exploit cross-state variation in program participation and staggered appointment timing in a difference-in-differences de- sign. Pre-booked appointments increase vaccination on the appointment day by 0.8 percentage points (8 per 1, 000), with no evidence of intertemporal substitution. Effects are larger for socio-economically disadvantaged individuals and substan- tially weaker in areas with stronger vaccine skepticism. The findings suggest that behavioral interventions are effective when low uptake reflects frictions, but have limited impact when driven by entrenched skepticism. |
| Keywords: | Behavioral public policy, behavioral frictions, vaccine hesitancy, nudges, pre-booked appointments, COVID-19, administrative data |
| JEL: | I12 D91 H51 C21 D83 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:dicedp:341426 |
| By: | Möller, Joachim (University of Regensburg and Institute for Employment Research (IAB), Nuremberg) |
| Abstract: | During and after World War II, West Germany absorbed around eight million refugees and displaced persons, including nearly two million children. This provides a natural experiment to examine whether birthplace characteristics exert persistent effects on later labor-market outcomes. Using administrative labor-market biographies for the 1935–1950 birth cohorts combined with geocoded information on birthplaces and workplaces, we find that birthplace urbanicity is strongly associated with later labor-market outcomes not only among both native-born individuals but also among expellees. Individuals originating from urban regions earn systematically higher daily wages than those born in rural areas, even after controlling for workplace region, education, and occupation. Among displaced individuals, the effects are considerably stronger for women than for men and are especially pronounced for expellees from the Czech lands. The findings suggest that urban-origin advantages were transmitted across generations through education, occupational sorting, and family-specific social and cultural capital. |
| Keywords: | urban origins, forced migration, birthplace effects, lifetime earnings, labor-market outcomes, regional mobility, gender differences, intergenerational transmission |
| JEL: | R12 R23 J24 J61 N34 |
| Date: | 2026–06 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18725 |
| By: | Asger Lau Andersen; Niels Johannesen; Jens Brøndum Petersen; Sonja Settele; Johannes Wohlfart |
| Abstract: | How do households respond when deposit rates drop below zero? Using administrative micro data and exploiting cross-bank variation in interest rate policies, we study a major episode of negative deposit rates in Denmark affecting two thirds of household deposits. We find that households strongly reduced deposit balances when exposed to negative deposit rates, allocating funds to stock portfolios and consumption. In a large-scale survey, we document important roles for loss aversion, perceived unfairness, intertemporal substitution and return considerations in driving these responses. Our findings suggest that monetary policy can have strong consumption effects in negative territory. |
| Keywords: | negative interest rates, households, consumption, monetary policy |
| JEL: | D14 D83 D84 D91 E21 E43 E52 E71 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12732 |
| By: | Marco De Simone; Dario Guarascio; Jelena Reljic |
| Abstract: | This paper examines the impact of robotisation on workplace safety in EU manufacturing sectors between 2011 and 2019. To address endogeneity concerns, we employ an instrumental variable approach and find that robot adoption reduces both injuries and fatalities. Specifically, a 10% increase in robot adoption is associated with a 0.066% reduction in fatalities and a 1.96% decrease in injuries. Our findings highlight the context-dependent nature of these effects. The safety benefits of robotisation materialise only in high-tech sectors and in countries where industrial relations provide strong worker protections. In contrast, in traditional industries and countries with weaker institutional frameworks, these benefits remain largely unrealised. The results are robust to several sensitivity tests. |
| Keywords: | EU, robotisation, technology, workplace safety, injuries, fatalities, industrial relations |
| JEL: | J01 J08 J28 J50 J81 L60 O33 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:ter:wpaper:00188 |
| By: | Nicolas Camilotto (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur, UniCA - Université Côte d'Azur) |
| Keywords: | Trust, Trust Game |
| Date: | 2026–05–26 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05659421 |