News
Discussion Paper: The Bitter Taste of Unemployment - Evidence from Plant Closures and Layoffs
The new discussion paper "The Bitter Taste of Unemployment - Evidence from Plant Closures and Layoffs" by Max Steinhardt and Christopher Prömel is now available. Abstract This study examines the effects of unemployment on bitterness, which describes a feeling of not having achieved what one deserves compared to others. Pooled OLS and fixed effects estimates reveal a positive association between unemployment and bitterness. To identify the causal effect of unemployment on bitterness, we exploit variation from plant closures and layoffs in Germany, combining entropy balancing with difference-in-differences estimation. We find that unemployment leads to a substantial and significant increase in bitterness of nearly half a point on the 1-7 point Likert scale. We demonstrate the robustness of our findings and that both the experience of job loss and the state of being unemployed contribute separately to a significant increase in bitterness, with longer unemployment duration resulting in higher levels of bitterness. Lastly, we evaluate the persistence of our effects, finding significant long-term effects for those who remain unemployed for over one year. Link to the discussion paper
Aug 27, 2025
Language proficiency and homeownership: Evidence from U.S. immigrants
The joint work of Marc-André Luik, Max Steinh ardt, and Simon Voss , " Language proficiency and homeownership: Evidence from U.S. immigrants " is now available in the Journal of Housing Economics. Abstract: In this paper, we deliver the first causal evidence on the relationship between immigrant host-country language proficiency and homeownership. Using an instrumental variable strategy, we find a substantial positive impact of language skills on the propensity to own a home and the quality of housing among immigrants in the United States. While this effect is mediated by household income, our estimates also speak in favor of a direct language effect. Suggestive evidence further indicates that part of this effect may be driven by discrimination. Our results highlight the importance of host-country-specific human capital and, in particular, language proficiency for socio-economic assimilation in housing markets. Link to the paper
Aug 13, 2025
Working Paper: Feeling Equal before the Law? The Impact of Access to Citizenship and Legal Status on Perceived Discrimination
The new discussion paper “ Feeling Equal before the Law? The Impact of Access to Citizenship and Legal Status on Perceived Discrimination ” by Adriana Rocío Cardozo Silva (DIW) and Christopher Prömel is now available on the DIW website. Abstract: In this study, we contribute to the literature about the effects of improving access to citizenship on integration outcomes. Hereby, we exploit exogenous variation from two citizenship reforms in Germany to estimate the effects of residency requirements on perceived discrimination, which is strongly linked to individual well-being, sense of belonging, and migration desires and decisions. We find that reducing waiting times to become eligible for citizenship decreases perceptions of discrimination. However, heterogeneity analyses reveal that these effects appear to be mostly limited to men and immigrants from Eastern European countries. In addition to our main analysis, we exploit exogenous variation from EU enlargement to show that citizens from countries that became part of the EU report significantly less discrimination than non-EU immigrants. Link to the working paper
May 16, 2025
New Policy Briefing: "Ethnische Diversität im Klassenzimmer: Chancen für Gesellschaft und Wirtschaft"
A new policy briefing by Max Steinhardt and Christopher Prömel was published in the latest issue of the ifo institute (German only) Eine zentrale Voraussetzung, um das Potenzial kultureller Vielfalt zu nutzen, ist auch aus Sicht von Christopher Prömel und Max Friedrich Steinhardt, FU Berlin, dass es zwischen den einzelnen kulturellen und ethnischen Gruppen zu einem Austausch kommt. Segregierte Gesellschaften seien dazu nicht in der Lage. Eine zentrale Rolle spielen hierbei Schulen: Programme zur Förderung ethnischer Diversität an Schulen könnten dazu beitragen, Vorurteile abzubauen und die soziale Integration zu stärken. Link to the policy briefing
Apr 14, 2025
Marrying a Billonaire - New publication by Ria Wilken
Marrying a Billionaire - Studying US American billionaires’ family biographies using the Forbes World’s Billionaires List, 2010–2022 was published in Review of Economics of the Household.
Jan 09, 2025
Call for Papers: Workshop on the Impact of Immigration and Refugee Inflows on Host Country Economies
Nov 26, 2024
Paper by Christopher Prömel accepted for publication at the Journal of Behavior & Organization
Oct 07, 2024
New Publication by Max Steinhardt on Public Opinion and Congressional Votes on the 1965 Immigration Act
Jan 29, 2024