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Publication Agricultural education in Honduras : return on investment, quality, and efficiency(2020) Flores Rios, Maria Delfina; Knierim, AndreaThe Agri-food sector, like any other economic sector, requires competent workers and entrepreneurs able to maximize productivity and cope with the various challenges the sector is facing. Agricultural education prepares these actors to acquire knowledge, identify options that optimize their productivity, and adapt to changing environments. However, the importance of agricultural education is declining in education policies, and nowadays, it is no longer an attractive field of study for the youth. There is a need to re-invent agricultural careers to the new demands of the agri-food and labor market sectors. As there is a limited number of studies available that analyze agricultural education in Latin-American and other developing countries, this research provides new insights by examining the determinants for return to investment, quality, and efficiency of agricultural education, taking Honduras as a case study. The present dissertation encompasses three interrelated studies. The first study addresses the research question on how the educational attainment on agricultural education, years of experience, age, sex, geographical region of residence, and work sector, affect the graduates earnings. This study computes the return to agricultural education by educational level, using several econometric techniques, such as the instrumental variables, Heckman’s two-step procedure, and the multinomial logit to tackle endogeneity of education, sample selection bias, and selection bias for choosing this field of study, respectively. The results show that regardless of the economic activity in which the individuals work, graduates from agricultural educational programs receive positive returns on their investment in education. High school graduates from these programs, have higher earnings within the economic activity of agriculture than non-graduates. At the university level, the graduates competencies are better paid in economic activities outside agriculture than inside, for example, in fields of manufacturing, public administration, and education. The second study addresses the question of what competencies employers require from graduates of agricultural education programs. Interviews and workshops were conducted, addressing employers from agricultural value chains, purposely selected, and using maximum variation sampling. The results show that graduates perform at an intermediate level in technical competencies. Of the 20 competencies identified, graduates perform poorly in at least six areas of competence, which requires immediate action. Although the analysis of academic curricula shows that the competencies included are relevant for employers to cope with the challenges faced by the agri-food sector, there is room for improvement. Finally, the third study addressed the question about the level of efficiency of the public institutions delivering agricultural educational programs, and the factors influencing it. This study computes the efficiency using the non-parametric approach data envelopment analysis (DEA). The model used is output-oriented, variable return to scale, and two-stage where controllable and non-controllable inputs are included in the first and second stages, respectively. This study follows a double bootstrapping procedure to avoid the caveats of the conventional DEA analysis. The evidence showed that none of the agriculture education centers in the sample is considered a full efficient entity. However, there is a potential to improve the usage of the current resources. It is possible by expanding the outcomes in a range of 1% to 50% without changing the existing resources. In summary, the findings of this dissertation provide compelling evidence that each additional level of agricultural education in Honduras is a worthwhile investment, and that graduates from both education levels, secondary and tertiary levels, are necessary to support Honduras economy. Nevertheless, improvements should be made in terms of the quality and the resources used in the provision of agricultural education. Based on the research findings, it is recommended to revise the academic curricula, with the aim of better matching education and labor market requirements. Secondly, a closer analysis of the implementation of the educational processes is necessary in order to enhance the competencies requested and identify better management of the resources available. Finally, setting formal collaboration mechanisms between the education centers, authorities, and the private sector could strongly improve agricultural education systems’ contribution to the performance of the sector. To further refine this research, it would be beneficial to increase the sample sizes to expand further the techniques used.Publication Arbeitslosigkeit und Lohnspreizung : empirische Befunde zur Arbeitsmarktsituation gering Qualifizierter in Deutschland(2007) Rukwid, RalfIn den Industriestaaten stehen die weniger qualifizierten Arbeitskräfte derzeit unter einem erheblichen Anpassungsdruck. Die Nachfragestruktur auf dem Arbeitsmarkt hat sich in den letzten Jahrzehnten zuungunsten der formal Ungelernten verschoben, wobei als die Hauptursachen dieser Entwicklung die Globalisierung sowie ein qualifikationsverzerrter technischer Fortschritt gelten. Ziel dieses Diskussionspapiers ist eine detaillierte Analyse der Arbeitsmarktsituation gering Qualifizierter in Deutschland. Es wird gezeigt, dass sich die Beschäftigungschancen für Erwerbspersonen ohne abgeschlossene Berufsausbildung seit Mitte der 1970er Jahre systematisch und gegenüber den höher Qualifizierten überproportional verschlechtert haben. Dabei übertrifft die aktuelle gruppenspezifische Arbeitslosenquote der Ungelernten in Deutschland diejenige fast aller anderen OECD-Staaten. Dies wird häufig als Beleg für eine im Ländervergleich außerordentliche Problemlage gewertet und mit inflexiblen Lohnstrukturen in direkten Zusammenhang gebracht. Dieser Beitrag soll mit Hilfe einer empirischen Analyse von deutschen, amerikanischen und britischen Lohndaten auf Basis des Cross National Equivalent File (CNEF) Aufschlüsse über den tatsächlichen Grad der Flexibilität der deutschen Lohnstruktur geben. Hierbei werden landesspezifische Entwicklungstendenzen bei der Lohnverteilung beschrieben und der jeweilige Umfang an Lohnspreizung geschätzt. Zudem wird mittels Berechnung von Subgruppendisparitäten und der Durchführung von Dekompositionsverfahren der Zusammenhang zwischen Lohnungleichheit und formaler Qualifikation untersucht. Vor dem Hintergrund dieser Analyseergebnisse sowie alternativer Studien erfolgt schließlich eine Einordnung der verschiedenen Politikansätze zur Verbesserung der Beschäftigungssituation gering Qualifizierter. Im Mittelpunkt der wirtschaftspolitischen Diskussion in Deutschland stehen neben Qualifizierungsstrategien vor allem Vorschläge einer stärkeren Lohndifferenzierung speziell im unteren Einkommensbereich. Eine simple monokausale Beziehung zwischen Lohnspreizung und der Intensität der Beschäftigungsprobleme gering qualifizierter Arbeitskräfte lässt sich anhand der in diesem Beitrag präsentierten empirischen Befunde allerdings nicht nachweisen.Publication Die Arbeitsmarktsituation formal Geringqualifizierter in Deutschland : Folgen, Ursachen und Politikimplikationen einer veränderten Nachfrage nach einfacher Arbeit(2015) Rukwid, Ralf; Hagemann, HaraldThis dissertation provides an elaborate discussion of the labour market situation of low-skilled workers in Germany. It starts with a precise description of the employment and wage effects for unskilled labour in the context of a skill-specific structural change and the tendency towards a knowledge-based economy. The analysis focuses on the current job and income opportunities of low-skilled workers as well as the historical developments. This is followed by an overview of the theoretical determinants of the specific labour market problems of unskilled workers and the main explanations for a long-term demand shift away from low-skilled labour (trade vs. technology). Finally, different political approaches for an improvement of the job prospects of less-qualified persons in Germany are presented and evaluated. The focus here is on one hand on various strategies for enhancing flexibility of the German wage structure and on the other hand on a further expansion and improvement of the system of education and vocational training.Publication Asylum migration of Afghans and Syrians to Germany : opportunities and challenges during transit and integration(2022) Torfa, Masooma; Birner, ReginaRefugee migration continues to receive considerable attention in the literature, primarily due to its escalating importance. According to the United Nations (UN), forced displacements in 2021 are the highest ever recorded. Since 2015, Afghans and Syrians have been the two largest internationally displaced populations, not only globally, but also within the European Union (EU). In the last seven years, the number of Afghans applying for asylum in Europe has continued to rise despite the EU’s efforts to discourage them. There are major knowledge gaps in the literature with regard to the experiences of migration from the perspective of the refugees themselves and about the driving factors and actors behind fragmented migration journeys. There is also limited literature on Afghan refugees, even though they constitute the second-largest nationality in asylum migration to Europe. Moreover, there are knowledge gaps on the role that different actors, particularly private companies, play for refugees’ integration in the receiving societies. Addressing these knowledge gaps, the research objectives of this thesis were (1) to explore the trajectories of fragmented migration undertaken by Afghan and Syrian refugees to Germany; (2) to better understand the opportunities and challenges of their adaptation to new societies; and (3) to explore the role of private companies in integrating refugees into the labour market. This dissertation uses a qualitative case study design, with individual in-depth interviews and Focus Group Discussions with newly arrived Afghans and Syrians, experts from the public sector, non-governmental organizations (NGOs), social workers, volunteers, translators/interpreters and private companies. In total, 91 refugees and 69 respondents from the public and private sector and civil society organizations participated in this research. The findings on the first objective showed that three-quarters of Afghan respondents did not plan to travel to Germany before their departure; in contrast, the majority of Syrian respondents did have Germany as a destination in mind when departing from their origin or a transit country. There were different factors behind origin migration (i.e. direct migration from the country of origin to the country of destination) and transit migration (i.e. migration with extended stays in other countries before reaching the destination country). The majority of the respondents migrating directly from Afghanistan and Syria left their countries of origin mainly due to political prosecution, violent conflict, personal security, and socio-economic pressure. The major reasons that led to the departure from transit countries were lack of prospects, lack of legal residence permits, fear of deportation, barriers to education and employment, exploitation of their labour, explicit racism, and ethnic and racial discrimination. Moreover, there were some temporary factors such as the so-called opening of borders to Europe in 2015 and expectations for the protection of Syrians in Germany that were seen as an opportunity for both transit and origin migration to Europe. Smugglers, other asylum seekers in transit, and social media contacts were the most influential actors and played very important roles at the beginning, transit, and endpoints of refugees’ journeys. To address the root causes of migration, European countries including Germany could facilitate regular migration pathways. Moreover, with regard to transit migration, Germany and other European countries could support improving the conditions of refugees in the first countries of refuge, e.g., by creating more favourable reception and living conditions there, improving access to residence and work permits as well as opportunities for employment and education. The findings of the interviews suggest that this may change the decisions of many about undergoing the risky onward migration to Europe. The findings with regard to the second research objective show interesting differences in the integration of the two nationalities included in the study. Syrians were found to be better integrated into their communities as compared to Afghans. The study showed that the shorter the asylum application process is and the more secure the residency status is (which is typically the case for Syrians), the faster refugees gained access to language and integration courses, which gave them a better opportunity to get integrated into the labour market, to find housing and to make better connections to the receiving society. Among the challenges faced by Afghan refugees were the lengthy asylum application process, the difficulty in securing housing, and the long-term residence in reception centres, which caused considerable stress and hardship for the refugees. The opportunities for refugees’ adaptation into the new societies were facilitated by diverse volunteer services, social and cultural events, and labour market integration services besides the government-provided German language integration courses. Although Stuttgart was found to be a pioneering city in terms of integration facilities for refugees, there is still room for improvements, such as timely accommodation of refugees outside of refuge centres, better coordination of integration offers, and systematic employment of volunteer services for social and labour market integration purposes. Regarding the third objective, the study showed that the engagement of private companies in the labour market integration of refugees increased with the larger arrival of refugees during 2015/2016. This was due to several factors, including the following: the discursive environment; the government call to private sector participation; corporate social responsibility of large-scale international companies; and shortages of skilled workers for small and medium-sized businesses, specifically in the care and service sector. However, the findings indicate that bureaucratic administrative employment procedures, challenges related to cooperation with the public sector, and lack of secure work permits have not only discouraged companies from engagement but also decreased the effectiveness of their engagement.Publication Does immigration boost per capita income?(2008) Sala, Davide; Felbermayr, Gabriel J.; Hiller, SanneUsing a cross-section of countries, we adapt Frankel and Romer's (1999) IV strategy to international labor mobility. Controlling for institutional quality, trade, and financial openness, we establish a robust and non-negative causal effect of immigration on real percapita income.Publication Factor mobility and heterogeneous labour in computable general equilibrium modelling(2014) Flaig, Dorothee; Grethe, HaraldThe representation of labour markets in Computable General Equilibrium (CGE) models is characterised by a trade-off between data representation and data availability. Models are by definition abstract and simplified pictures of the real world: as a map of scale 1:1 does not help to find an unknown destination, a model which perfectly depicts the real world would hardly help to analyse adjustment effects of policy changes or macroeconomic shocks. When the analysis is focused on distributional issues, it seems obvious that such an analysis can only be based on models that differentiate at least more than one household group. Household groups characteristically differ in factor endowment and since factor income– besides price effects – is a main determinant of welfare analysis, the specification of labour markets crucially determines the analysis. There are mainly two possibilities to specify the labour market in a CGE model: First, the labour market can be set up as competitive market with perfect substitutability between individual workers on that market. With this setup, wages must be equal among labour types and sectors because every difference in wages provokes adjustments, which finally equalise wages again. In contrast, data reports typically significant wage differences between labour types that can only originate from imperfect labour markets. Thus, the second option is to depict these wage differences by imperfect substitutability of individual workers in the production process. But data on substitution possibilities of labour demand between different labour types is weak and estimations of substitution elasticities are in most of the cases not available. Meanwhile, in the real world, wages differ in various dimensions and in models labour types are typically differentiated by age, gender, skill level or occupation. When differentiating labour types within these dimensions, wage differences become possible and can be explained by transformation limitations between characteristics: e.g., wage differences between female and male workers are originating from the fact that female workers cannot become male workers. This differentiation has the effect that in most of the models, transformation between the characteristics of a dimension is no longer possible and workers stay in a specific labour type. Typically labour types are not differentiated by sector of employment and, thus, are assumed homogeneous amongst sectors. Movement of workers between sectors seems possible; nevertheless, data reports partly huge wage differences between different sectors of an economy. As a solution, CGE models typically include an efficiency parameter which allows calibrating the model according to the data, but the model assumes still homogeneous labour which should be priced equal. Thus, the efficiency parameter does not economically explain the existence of these wage differences. This thesis presents a comprehensive and flexible framework to introduce imperfect factor markets in CGE models. Labour mobility between labour types is controlled by migration functions where the degree of mobility is controlled by elasticities that govern the responsiveness of migration to changes in relative wages. Finally, the model provides the user with three additional instruments to control the operation of labour markets. First, the user can control the stock flow relationship for each labour type, e.g., does a migrating worker keep her productivity from the initial activity, adopt that of the destination activity or something in between; second, the user controls the flexibility of the labour market by setting the migration elasticities between activity blocks; and third, the setting of adjustment parameters determines the (assumed) costs of migrating. The analysis of productivity effects and costs of factor reallocation emphasises the relevance and influence of labour market specifications on model outcomes. Thus, this thesis sets the base for a careful setup and test of labour market assumptions applied in CGE models.Publication Grenzen der Bildungsexpansion? : Ausbildungsinadäquate Beschäftigung von Ausbildungs- und Hochschulabsolventen in Deutschland(2012) Rukwid, RalfDer Begriff der Ausbildungsadäquanz zielt auf den Grad der Übereinstimmung zwischen den im Bildungssystem erworbenen Qualifikationen und dem Anforderungsprofil der am Arbeitsmarkt ausgeübten Tätigkeit. Im Falle einer ausbildungsinadäquaten Beschäftigung oder auch Fehlqualifikation bleibt ein bedeutender Teil der während der Ausbildungsphase angeeigneten beruflichen Fertigkeiten und Kenntnisse ungenutzt. Ausbildungsinadäquate Erwerbstätigkeit geht folglich einher mit einer suboptimalen Verwertung von Humankapital und zieht sowohl auf persönlicher als auch auf gesamtwirtschaftlicher Ebene erhebliche negative Konsequenzen nach sich. Dieser Diskussionsbeitrag? greift die Frage nach der Ausbildungs(in)adäquanz der Beschäftigung auf und untersucht diese detailiert in Hinblick auf die aktuelle Problemlage in Deutschland. Dabei werden sowohl die Erkenntnisse bisher vorhandener empirischer Studien zusammengefasst als auch eigene deskriptive Analyseresultate auf der Datengrundlage des Sozio-oekonomischen Panels (SOEP)? vorgestellt. Sowohl auf Ebene der Hochschulabsolventen als auch der Absolventen der beruflichen Ausbildungsgänge deuten die Befunde auf beträchtliche Qualifikationsreserven hin. In der langfristigen Betrachtung zeigt sich zudem, dass der Anteil ausbildungsinadäquater Beschäftigungsverhältnisse unter den akademischen Fachkräften in Deutschland seit der Wiedervereinigung deutlich zugenommen hat. Bei der ausbildungsinadäquaten bzw. unterwertigen Beschäftigung handelt es sich demnach um ein am deutschen Arbeitsmarkt verbreitetes und keinesfalls zu vernachlässigendes Phänomen, das künftig stärker in das Blickfeld von Politik und Arbeitsmarktforschung rücken sollte.Publication How important is precautionary labor supply?(2016) Schmitz, Sebastian; Rostam-Afschar, Davud; Jessen, RobinWe quantify the importance of precautionary labor supply using data from the German Socio-Economic Panel (SOEP) for 2001-2012. We estimate dynamic labor supply equations augmented with a measure of wage risk. Our results show that married men choose about 2.5% of their hours of work or one week per year on average to shield against unpredictable wage shocks. This implies that about 26% of precautionary savings are due to precautionary labor supply. If self-employed faced the same wage risk as the median civil servant, their hours of work would reduce by 4%.Publication Job insecurity, employability, and health : an analysis for germany across generations(2014) Otterbach, Steffen; Sousa-Poza, AlfonsoIn this paper, we use 12 waves of the German Socio-Economic Panel to examine the relationship between job insecurity, employability and health-related well-being. Our results indicate that being unemployed has a strong negative effect on life satisfaction and health. They also, however, highlight the fact that this effect is most prominent among individuals over the age of 40. A second observation is that job insecurity is also associated with lower levels of life satisfaction and health, and this association is quite strong. This negative effect of job insecurity is, in many cases, exacerbated by poor employability.Publication Mapping Stratification : the industry-occupationspace reveals the network structure ofinequality(2019) Gala, Paulo; Kaltenberg, Mary; Jara-Figueroa, Cristian; Hartmann, DominikSocial stratification is determined not only by income, education, race, and gender, but also by an individual’s job characteristics and their position in the industrial structure. Utilizing a dataset of 76.6 million Brazilian workers and methods from network science, we map the Brazilian Industry-Occupation Space (BIOS). The BIOS measures the extent to which 600 occupations co-appear in 585 industries, resulting in a complex network that shows how industrial-occupational communities provide important information on the network segmentation of society. Gender, race, education, and income are concentrated unevenly across the core-periphery structure of the BIOS. Moreover, we identify 28 industrial occupational communities from the BIOS network structure and report their contribution to total income inequality in Brazil. Finally, we quantify the relative poverty within these communities. In sum, the BIOS reveals how the coupling of industries and occupations contributes to mapping social stratification.Publication Migration and wage inequality : a detailed analysis for German regions over time(2022) Schmid, RamonaThis study presents new evidence on immigrant-native wage differentials estimated in consideration of regional differences regarding the presence of Non-German population in metropolitan and non-metropolitan areas between 2000 and 2019 in Germany. Using linked employer-employee-data, unconditional quantile regression models are estimated in order to assess the degree of labor market integration of foreign workers. Applying an extended version of the Oaxaca-Blinder decomposition method, the results provide evidence on driving factors behind wage gaps along the entire wage distribution. There are not only changes in the relative importance of explanatory factors over time, but also possible sources of wage differentials shift between different points of the wage distribution. Differentiating between various areas in Germany, on average, larger wage gaps are revealed in metropolitan areas with at the same time a higher presence of the foreign population. Regarding the size of overall estimated wage gaps, after 2012 a reversal in trend and particular increasing tendencies around median wages are identified.Publication Mismatches between actual and preferred work time : empirical evidence of hours constraints in 21 countries(2009) Otterbach, SteffenThis paper analyzes the discrepancy between actual and desired working hours in a multinational setting. Using the latest data of the International Social Survey Program (ISSP) with a focus on work orientations hours constraints in 21 heterogeneous countries are analyzed. One major finding is that hours constraints are interrelated with macroeconomic variables such as (i) unemployment rates, (ii) GDP per capita as a measure of welfare, (iii) average weekly work hours, and (iv) income inequality. A subsequent multivariate analysis reveals that, on both macro- and microlevels, sociodemographic variables like prosperity and income, high risk of unemployment, and working conditions play an important role in determining working hours constraints. The results further suggest that, with respect to working conditions, such constraints are also affected by gender issues.Publication Occupational regulation, institutions, and migrants labor market outcomes(2022) Koumenta, Maria; Pagliero, Mario; Rostam-Afschar, DavudWe study how licensing, certification and unionisation affect the wages of natives and migrants and their representation among licensed, certified, and unionized workers. We provide evidence of a dual role of labor market institutions, which both screen workers based on unobservable characteristics and also provide them with wage setting power. Labor market institutions confer significant wage premia to native workers (3.9, 1.6, and 2.7 log points for licensing, certification, and unionization respectively), due to screening and wage setting power. Wage premia are significantly larger for licensed and certified migrants (10.2 and 6.6 log points), reflecting a more intense screening of migrant than native workers. The representation of migrants among licensed (but not certified or unionized) workers is 14% lower than that of natives. This implies a more intense screening of migrants by licensing institutions than by certification and unionization.Publication Service offshoring and the demand for less-skilled labor : evidence from Germany(2007) Schöller, DeborahBesides material offshoring, economists have started to analyze the impact of service offshoring on domestic employment. Services are of particular interest since their significance has grown in terms of both quantity and quality. One decade ago, most services were considered non-tradable, but the emergence of new information and communication technologies has contributed to overcoming geographical distance. The move towards the liberalization of international service trade has further accelerated this process. The empirical part of this paper first calculates German service offshoring intensities on a sectoral basis using input-output data. This measurement represents the proportion of imported service inputs used in home production. Germany?s average service offshoring intensity more than doubled from 1991 to 2003. In a next step, the impact of service offshoring on the demand for heterogeneous labor in Germany is estimated at a sectoral level including 28 manufacturing sectors. The partial static equilibrium model is based on a variable unit cost function in the general translog form allowing for quasi-fixed input factors. Two different skill-levels are taken into account. The estimation results indicate that service offshoring reduced the relative demand for less-skilled labor in the German manufacturing sectors by on average -0.06 to -0.16% per year between 1991 and 2000.Publication The economic burden of chronic diseases : estimates and projections for China, Japan, and South Korea(2017) Prettner, Klaus; Oxley, Les; Bloom, David E.; Chen, Simiao; Kuhn, Michael; McGovern, Mark E.We propose a novel framework to analyse the macroeconomic impact of noncommunicable diseases. We incorporate measures of disease prevalence into a human capital augmented production function, which enables us to determine the economic costs of chronic health conditions in terms of foregone gross domestic product (GDP). Unlike previously adopted frameworks, this approach allows us to account for i) variations in human capital for workers in different age groups, ii) mortality and morbidity effects of non-communicable diseases, and iii) the treatment costs of diseases. We apply our methodology to China, Japan, and South Korea, and estimate the economic burden of chronic conditions in five domains (cardiovascular diseases, cancer, respiratory diseases, diabetes, and mental health conditions). Overall, total losses associated with these non-communicable diseases over the period 2010-2030 are $16 trillion for China (measured in real USD with the base year 2010), $5.7 trillion for Japan, and $1.5 trillion for South Korea. Our results also highlight the limits of cost-effectiveness analysis by identifying some intervention strategies to reduce disease prevalence in China that are cost beneficial and therefore a rational use of resources, though they are not cost-effective as judged by conventional thresholds.Publication Unemployment in an interdependent world(2009) Felbermayr, Gabriel; Larch, Mario; Lechthaler, WolfgangWe introduce search and matching unemployment into a model of trade with differentiated goods and heterogeneous firms. Countries may differ with respect to size, geographical location, and labor market institutions. Contrary to the literature, our single-sector perspective pays special attention to the role of income effects and shows that bad institutions in one country worsen labor market outcomes not only in that country but also in its trading partners. This spill-over effect is conditioned by trade costs and country size: smaller and/or more centrally located nations suffer less from inefficient policies at home and are more heavily affected from spill-overs abroad than larger and/or peripheral ones. We offer empirical evidence for a panel of 20 rich OECD countries. Carefully controlling for institutional features and for business cycle comovements between countries, we confirm our qualitative theoretical predictions. However, the magnitude of spill-over effects is larger in the data than in the theoretical model. We show that introducing real wage rigidity can remedy this problem.