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Housing costs have exacerbated income equality in Germany

CReAM Research by Christian Dustmann and co-authors finds that changes in housing expenditures dramatically exacerbated the rise in income inequality in Germany since the mid-1990s. The research was covered on the German press.

Press Release

Discussion Paper

VoxEU

FAZ

UCL News

Immigrant and disadvantaged children benefit most from early childcare

Attending universal childcare from age three significantly improves the school readiness of children from immigrant and disadvantaged family backgrounds.

Press Release

Discussion Paper

iNews

UCL News

FAZ

VoxEU

 

The Criminal Behaviour of Young Fathers

CReAM Research by Christian Dustmann and  Rasmus Landersø, finds that  very young fathers who have their first child while they are still teenagers subsequently commit less crime if the child is a boy than if it is a girl. This  then has a spill over effect on other young men of a similar age living in the same neighbourhoods as the young father. The research was covered on the British press.

Press Release

Discussion Paper

VoxEU

The Telegraph

The Times

 

BBC 2

"I was quite prepared... to use the cover of the statistician's analysis": Former home secretary David Blunkett and Prof Dustmann on the 2003 report on EU accession

 

Brexit

BBC Three Counties

Christian Dustmann discussing Theresa May's comments on EU workers 'jumping the queue' on BBC Three Counties.

CReAM seminar

CReAM - Brown Bag Seminar
Alexandra Fedorets (DIW)

"Large Wage Shocks, Technological Substitution and Innovation"

Event date: Tuesday 23rd October 2018
12.30-1.30 pm Drayton, Room 321

The introduction of a federal minimum wage in Germany in 2015 created a profound wage shock on the labor market. We exploit the variation of this treatment across regions and different employees to estimate its impact on labor earnings and employment. The main contribution of this paper is to break down the effect heterogeneity for different degrees of labor substitutability. We use data on job content as well as survey information on the workplace to approximate substitutability of labor with capital. Although the federal minimum had a substantial impact on affected wages, a significant impact on employment cannot be identified for the average employee with various identification strategies. Yet, when the treatment is interacted with the substitutability of labor, we find statistically significant negative effects on the probability of remaining employed and a significantly higher unemployment risk for those employees who are more easily replaced by capital as production factor. We find this pattern to be consistent for alternative measures of substitutability as well as alternative specifications of the model. The fact that employers seem to cut primarily replaceable jobs provides valuable insights for targeted policies supporting those employees with the highest labor market risks following the introduction (or increase) of a minimum wage.