Education, Skills, and the Labour Market

The research group explores the formation and impact of skills. It focuses on family background, formal education, and on-the-job training as determinants of skill development, and investigates the role of skills for labour market success over workers’ careers. The group also examines the evolving demand for skills due to technological advancements and structural change.

Research Cluster
Productivity and Institutions

Your contact

Professor Dr Simon Wiederhold
Professor Dr Simon Wiederhold
- Department Structural Change and Productivity
Send Message +49 345 7753-840 Personal page

Refereed Publications

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Application Barriers and the Socioeconomic Gap in Child Care Enrollment

Henning Hermes Philipp Lergetporer Frauke Peter Simon Wiederhold

in: Journal of the European Economic Association, forthcoming

Abstract

Why are children with lower socioeconomic status (SES) substantially less likely to be enrolled in child care? We study whether barriers in the application process work against lower-SES children — the group known to benefit strongest from child care enrollment. In an RCT in Germany with highly subsidized child care (N = 607), we offer treated families information and personal assistance for applications. We find substantial, equity-enhancing effects of the treatment, closing half of the large SES gap in child care enrollment. Increased enrollment for lower-SES families is likely driven by altered application knowledge and behavior. We discuss scalability of our intervention and derive policy implications for the design of universal child care programs.

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Why Is the Roy-Borjas Model Unable to Predict International Migrant Selection on Education? Evidence from Urban and Rural Mexico

Stefan Leopold Jens Ruhose Simon Wiederhold

in: World Economy, forthcoming

Abstract

<p>The Roy-Borjas model predicts that international migrants are less educated than nonmigrants because the returns to education are generally higher in developing (migrant-sending) than in developed (migrant-receiving) countries. However, empirical evidence often shows the opposite. Using the case of Mexico-U.S. migration, we show that this inconsistency between predictions and empirical evidence can be resolved when the human capital of migrants is assessed using a two-dimensional measure of occupational skills rather than by educational attainment. Thus, focusing on a single skill dimension when investigating migrant selection can lead to misleading conclusions about the underlying economic incentives and behavioral models of migration.</p>

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Information about Inequality in Early Child Care Reduces Polarization in Policy Preferences

Henning Hermes Philipp Lergetporer Fabian Mierisch Guido Schwerdt Simon Wiederhold

in: Journal of Economic Behavior and Organization, December 2024

Abstract

<p>We investigate public preferences for equity-enhancing policies in access to early child care, using a survey experiment with a representative sample of the German population (n ≈ 4, 800). We observe strong misperceptions about migrant-native inequalities in early child care that vary by respondents’ age and right-wing voting preferences. Randomly providing information about the actual extent of inequalities has a nuanced impact on the support for equity-enhancing policy reforms: it increases support for respondents who initially underestimated these inequalities, and tends to decrease support for those who initially overestimated them. This asymmetric effect leads to a more consensual policy view, substantially decreasing the polarization in policy support between under- and overestimators. Our results suggest that correcting misperceptions can align public policy preferences, potentially leading to less polarized debates about how to address inequalities and discrimination.</p>

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Import Shocks and Voting Behavior in Europe Revisited

Annika Backes Steffen Müller

in: European Journal of Political Economy, June 2024

Abstract

We provide first evidence for the long-run causal impact that Chinese imports to European regions had on voting outcomes and revisit earlier estimates of the short-run impact for a methodological reason. The fringes of the political spectrum gained ground many years after the China shock plateaued and, unlike an earlier study by Colantone and Stanig (2018b), we do not find any robust evidence for a short-run effect on far-right votes. Instead, far-left and populist parties gained in the short run. We identify persistent long-run effects of import shocks on voting. These effects are biased towards populism and, to a lesser extent, to the far-right.

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Can Mentoring Alleviate Family Disadvantage in Adolescence? A Field Experiment to Improve Labor-Market Prospects

Sven Resnjanskij Jens Ruhose Simon Wiederhold Ludger Woessmann Katharina Wedel

in: Journal of Political Economy, No. 3, 2024

Abstract

We study a mentoring program that aims to improve the labor-market prospects of school-attending adolescents from disadvantaged families by offering them a university-student mentor. Our RCT investigates program effectiveness on three outcome dimensions that are highly predictive of later labor-market success: math grades, patience/social skills, and labor-market orientation. For low-SES adolescents, the mentoring increases a combined index of the outcomes by over half a standard deviation after one year, with significant increases in each dimension. Part of the treatment effect is mediated by establishing mentors as attachment figures who provide guidance for the future. Effects on grades and labor-market orientation, but not on patience/social skills, persist three years after program start. By that time, the mentoring also improves early realizations of school-to-work transitions for low-SES adolescents. The mentoring is not effective for higher-SES adolescents. The results show that substituting lacking family support by other adults can help disadvantaged children at adolescent age.

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Working Papers

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Early Child Care, Maternal Labor Supply, and Gender Equality: A Randomized Controlled Trial?

Henning Hermes Marina Krauß Philipp Lergetporer Frauke Peter Simon Wiederhold

in: IWH Discussion Papers, No. 14, 2024

Abstract

We provide experimental evidence that enabling access to universal early child care increases maternal labor supply and promotes gender equality among families with lower socioeconomic status (SES). Our intervention offers information and customized help with child care applications, leading to a boost in child care enrollment among lower-SES families. 18 months after the intervention, we find substantial increases in maternal full-time employment (+160%), maternal earnings (+22%), and household income (+10%). Intriguingly, the positive employment effects are not only driven by extended hours at child care centers, but also by an increase in care hours by fathers. Gender equality also benefits more broadly from better access to child care: The treatment improves a gender equality index that combines information on intra-household division of working hours, care hours, and earnings by 40% of a standard deviation, with significant increases in each dimension. For higher-SES families, we consistently observe negligible, insignificant treatment effects.

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Does Information about Inequality and Discrimination in Early Child Care Affect Policy Preferences?

Henning Hermes Philipp Lergetporer Fabian Mierisch Guido Schwerdt Simon Wiederhold

in: CESifo Working Paper, No. 10925, 2024

Abstract

We investigate public preferences for equity-enhancing policies in access to early child care, using a survey experiment with a representative sample of the German population (n ≈ 4, 800). We observe strong misperceptions about migrant-native inequalities in early child care that vary by respondents’ age and right-wing voting preferences. Randomly providing information about the actual extent of inequalities has a nuanced impact on the support for equity-enhancing policy reforms: it increases support for respondents who initially underestimated these inequalities, and tends to decrease support for those who initially overestimated them. This asymmetric effect leads to a more consensual policy view, substantially decreasing the polarization in policy support between under- and overestimators. Our results suggest that correcting misperceptions can align public policy preferences, potentially leading to less polarized debates about how to address inequalities and discrimination.

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Do Role Models Matter in Large Classes? New Evidence on Gender Match Effects in Higher Education

Stephan Maurer Guido Schwerdt Simon Wiederhold

in: IWH Discussion Papers, No. 14, 2023

Abstract

It is well established that female students perform better when taught by female professors. However, little is known about the mechanisms explaining these gender match effects. Using administrative records from a German public university, which cover all programs and courses between 2006 and 2018, we show that gender match effects are sizable in smaller classes, but are absent in larger classes. These results suggest that direct and frequent interactions between students and professors are crucial for gender match effects to emerge. In contrast, the mere fact that one’s professor is female is not sufficient to increase performance of female students.

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Where Do STEM Graduates Stem from? The Intergenerational Transmission of Comparative Skill Advantages

Eric A. Hanushek Babs Jacobs Guido Schwerdt Rolf van der Velden Stan Vermeulen Simon Wiederhold

in: IWH Discussion Papers, No. 13, 2023

Abstract

The standard economic model of occupational choice following a basic Roy model emphasizes individual selection and comparative advantage, but the sources of comparative advantage are not well understood. We employ a unique combination of Dutch survey and registry data that links math and language skills across generations and permits analysis of the intergenerational transmission of comparative skill advantages. Exploiting within-family between-subject variation in skills, we show that comparative advantages in math of parents are significantly linked to those of their children. A causal interpretation follows from a novel IV estimation that isolates variation in parent skill advantages due to their teacher and classroom peer quality. Finally, we show the strong influence of family skill transmission on children’s choices of STEM fields.

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Discrimination in Universal Social Programs? A Nationwide Field Experiment on Access to Child Care

Henning Hermes Philipp Lergetporer Fabian Mierisch Frauke Peter Simon Wiederhold

in: IWH Discussion Papers, No. 12, 2023

Abstract

Although explicit discrimination in access to social programs is typically prohibited, more subtle forms of discrimination prior to the formal application process may still exist. Unveiling this phenomenon, we provide the first causal evidence of discrimination against migrants seeking child care. We send emails from fictitious parents to &gt; 18, 000 early child care centers across Germany, inquiring about slot availability and application procedures. Randomly varying names to signal migration background, we find that migrants receive 4.4 percentage points fewer responses. Replies to migrants contain fewer slot offers, provide less helpful content, and are less encouraging. Exploring mechanisms using three additional treatments, we show that discrimination is stronger against migrant boys. This finding suggests that anticipated higher effort required for migrants partly drives discrimination, which is also supported by additional survey and administrative data. Our results highlight that difficult-to-detect discrimination in the pre-application phase could hinder migrants’ access to universal social programs.

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