Springe direkt zu Inhalt

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

27.08.2025 | Wirtschaft

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

13.08.2025 | Wirtschaft

Diskussionspapier: Feeling Equal before the Law? The Impact of Access to Citizenship and Legal Status on Perceived Discrimination

Das neues Diskussionspapier " Feeling Equal before the Law? The Impact of Access to Citizenship and Legal Status on Perceived Discrimination " von Adriana Rocío Cardozo Silva (DIW) und Christopher Prömel  ist ab sofort auf der Seite des DIW zu finden. 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 zum Diskussionspapier

16.05.2025 | Wirtschaft