Many commonly used treatment effects estimators rely on the unconfoundedness assumption (“selection on observables") which is fundamentally non-testable. When evaluating the effects of labor market policies, researchers need to observe variables that affect both treatment participation and...

Increasing labour shortages are mainly due to demographic developments - specifically the baby boom in Germany, with a strong peak in the early 1960s. Despite strong immigration in recent years, the ratio of 20-24 year-olds to 60-64 year-olds was only 75 to 100 in 2021, and if younger cohorts...