This paper estimates sibling correlations in cognitive skills and non-cognitive skills to evaluate the importance of family background for skill formation. The study is based on a large representative German dataset, which includes IQ test scores and measures of personality (locus of control,...

We present a non-cooperative model of a family's time allocation between work and a home-produced public good, and examine whether the income tax should apply to couples or individuals. While tax-induced labor supply distortions lead to overprovision of the public good, spouses' failure to...

This paper explores the implications of gender-based income taxation in a non-cooperative model of a couple's time allocation between market work and providing a household public good. We find that the optimal structure of differential taxation by gender is solely determined by spouses' relative...

In Germany, it has become conventional wisdom that the economic uncertainty associated fixed-term employment contracts prevents young couples from realizing their desire to have children. From a research perspective, it is however far from clear whether fixed-term contracts are the obstacle to...

We consider a bargaining model in which husband and wife decide on the allocation of time and disposable income. Since her bargaining power would go down otherwise more strongly, the wife agrees to having a child only if the husband also leaves the labor market for a while. The daddy months...

Western labor markets face major challenges caused by demographic changes. They increasingly experience a shortage of skilled workers and face the problem of an increasing disparity between a reduced group of active workers contributing to the pension scheme and a rising share of an older...

We study the effect of the introduction of the German statutory minimum wage law in 2015 on teenagers' educational expectations. We focus on low-skilled students, the group most likely to be affected by the minimum wage after entering the labor market. Theoretical predictions of the effect of...

Personality traits and other non-cognitive skills have long been considered to be quite stable over adulthood. Economic studies on non-cognitive skills as determinants of educational and labor market outcomes therefore assumed their stability over time to rule out reverse causality. However,...