The level of trust inherent in a society is important for a wide range of microeconomic and macroeconomic outcomes. This paper investigates how individuals' attitudes toward social and institutional trust are shaped by the political regime in which they live. The German reunification is a unique...

The paper reviews national and international experiences with different combinations of in-work benefits, subsidized employment, statutory minimum wages and implicit minimum wages defined by social assistance provisions. It calls for a cautious approach regarding the introduction of additional...

This paper looks at the wage effects of perceived and objective insecurity in Germany and the UK using the GSOEP and BHPS panels. The distinction between perceived worry about job loss and economic indicators such as regional unemployment rates and the share of temporary contracts is...

This paper investigates gender differences in smoking behavior using data from the German Socio-economic Panel (SOEP). We develop a Blinder-Oaxaca decomposition method for count data models which allows to isolate the part of the gender differential in the number of cigarettes daily smoked that...

"Prominent economic theories have emphasized the role of commonly held perceptions and expectations for determining macroeconomic outcomes. A key empirical question is how such collectively held beliefs are formed. We use the FIFA World Cup 2006 as a natural experiment. We provide direct...

We estimate the effect of age of school entry on educational attainment using three different data sets for Germany, sampling pupils at the end of primary school, in the middle of secondary school and several years after secondary school. Results are obtained based on instrumental variable...

We analyze the impact on schooling outcomes of growing up in a family headed by a single mother. Growing up in a non-intact family in Germany is associated with worse outcomes in models that do not control for possible correlations between common unobserved determinants of family structure and...

In most industrialized countries, more people than ever are having to cope with the burden of caring for elderly parents. This paper formulates a model to explain how parental care responsibilities and family structure interact children's mobility characteristics. A key insight we obtain is that...

Despite a sequence of labor market reforms in recent years, employment of older workers in Germany is still lower than in many other European countries. The paper explains this by institutional factors that affect labor supply, labor demand and matching, i.e. labor market regulation, human...

Policy advice can help political actors design and implement institutional reforms through the generation of political and substantial legitimacy. This article clarifies the institutional pre-conditions of effective supply and transfer of policy advice with particular respect to the field of...