Information about Inequality in Early Child Care Reduces Polarization in Policy Preferences
Henning Hermes, Philipp Lergetporer, Fabian Mierisch, Guido Schwerdt, Simon Wiederhold
Journal of Economic Behavior and Organization,
December
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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Rent-Sharing und Energiekosten: In welchem Umfang geben Industrieunternehmen Gewinne und Verluste an ihre Beschäftigten weiter?
Matthias Mertens, Steffen Müller, Georg Neuschäffer
Wirtschaft im Wandel,
No. 2,
2024
Abstract
Diese Studie untersucht, wie die betrieblichen Erträge zwischen deutschen Industrieunternehmen und ihren Beschäftigten aufgeteilt werden. Dafür werden Energiepreisänderungen auf Unternehmensebene und die daraus resultierenden Veränderungen im Unternehmensertrag betrachtet. Wir finden heraus, dass höhere Energiepreise die Löhne drücken und dass ein Rückgang bei den Erträgen um 10% zu einem Rückgang der Löhne um 2% führt. Dieser Zusammenhang ist asymmetrisch, was bedeutet, dass die Löhne nicht von Senkungen der Energiepreise profitieren, aber durch Energiepreiserhöhungen sinken. Kleine Unternehmen geben Schwankungen im Ertrag stärker an die Beschäftigten weiter als Großunternehmen.
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Non-Standard Errors
Albert J. Menkveld, Anna Dreber, Felix Holzmeister, Juergen Huber, Magnus Johannesson, Michael Koetter, Markus Kirchner, Sebastian Neusüss, Michael Razen, Utz Weitzel, Shuo Xia, et al.
Journal of Finance,
No. 3,
2024
Abstract
In statistics, samples are drawn from a population in a datagenerating process (DGP). Standard errors measure the uncertainty in sample estimates of population parameters. In science, evidence is generated to test hypotheses in an evidencegenerating process (EGP). We claim that EGP variation across researchers adds uncertainty: non-standard errors. To study them, we let 164 teams test six hypotheses on the same sample. We find that non-standard errors are sizeable, on par with standard errors. Their size (i) co-varies only weakly with team merits, reproducibility, or peer rating, (ii) declines significantly after peer-feedback, and (iii) is underestimated by participants.
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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
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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Application Barriers and the Socioeconomic Gap in Child Care Enrollment
Henning Hermes, Philipp Lergetporer, Frauke Peter, Simon Wiederhold
IWH Discussion Papers,
No. 13,
2024
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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How Do EU Banks’ Funding Costs Respond to the CRD IV? An Assessment Based on the Banking Union Directives Database
Thomas Krause, Eleonora Sfrappini, Lena Tonzer, Cristina Zgherea
IWH Discussion Papers,
No. 12,
2024
Abstract
The establishment of the European Banking Union constitutes a major change in the regulatory framework of the banking system. Main parts are implemented via directives that show staggered transposition timing across EU member states. Based on the newly compiled Banking Union Directives Database, we assess how banks’ funding costs responded to the Capital Requirements Directive IV (CRD IV). Our findings show an upward trend in funding costs which is driven by an increase in cost of equity and partially offset by a decline in cost of debt. The diverging trends are most present in countries with an ex-ante lower regulatory capital stringency, which is in line with banks’ short-run adjustment needs but longer-run benefits from increased financial stability.
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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
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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Does Information about Inequality and Discrimination in Early Child Care Affect Policy Preferences?
Henning Hermes, Philipp Lergetporer, Fabian Mierisch, Guido Schwerdt, Simon Wiederhold
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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Media Response
Media Response November 2024 Steffen Müller: Firmaer er oftere i problemer in: Flensborg Avis, 22.11.2024 Steffen Müller: Zahl der Insolvenzen steigt in: Süddeutsche.de,…
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IWH Alumni The IWH maintains contact with its former employees worldwide. We involve our alumni in our work and keep them informed, for example, with a newsletter. We also plan…
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