We develop a labor demand model that encompasses pre-match hiring cost arising from tight labor markets. Through the lens of the model, we study the effect of labor market tightness on firms' labor demand by applying novel Bartik instruments to the universe of administrative employment data on...

This paper analyses a local marketing campaign in Germany that provided information about unproven agerelated stereotypes and the value of older workers. The campaign was designed to increase the hiring rate of older workers. Using comprehensive register data, we find that the information...

This paper analyzes whether financial disincentives affect firm demand for disabled workers. In Germany, firms must pay a noncompliance fine if they do not meet their legal quota for disabled workers. I exploit a threshold in this quota: Firms with fewer than 40 employees are required to employ...

We are the first to provide empirical evidence on differences in the individual costs of job loss for migrants compared to natives in Germany. Using linked employer-employee data for the period 1996-2017, we compute each displaced worker's earnings, wage, and employment loss after a mass layoff...

In recent decades, many industrialized economies have witnessed a pattern of job polarization. While shifts in labor demand, namely routinization or offshoring, constitute conventional explanations for job polarization, there is little research on whether shifts in labor supply along the labor...

This paper estimates the direct effects of investment tax credits on firms' production behavior and the additional indirect effects arising from agglomeration economies. Exploiting a change in tax credit rates by firm size in Germany, I find that manufacturing firms increase capital and...