Labor Economics, Public Economics, Behavioral Economics, Financial Economics, Applied Econometrics
Risk Sharing Within and Outside the Firm: The Disparate Effects of Wrongful Discharge Laws on Expected Stock Returns (with R. Weber; IZA Discussion Paper No. 13941)
We study the effect of wrongful-discharge laws (WDL) on firm-level stock returns. We find disparate effects depending on the exact design of the law. Consistent with rational, risk-based pricing, the effect on returns seems to be linked to how firms share systematic risk with their employees under the respective laws. Firms in states with WDLs prohibiting employers from acting in bad faith have more intra-firm risk sharing and lower expected returns. Vaguer legislation that prohibits discharges in retaliation for acting in accordance with public policy is associated with less intra-firm risk sharing and higher expected returns.
Side Effects of Labor Market Policies (with M. Caliendo, G. van den Berg and J. Vikström; IZA Discussion Paper No. 13846)
Labor market policy tools such as training and sanctions are commonly used to help bring workers back to work. By analogy to medical treatments, the individual exposure to these tools may have side effects. We study effects on health using individual-level population registers on labor market events outcomes, drug prescriptions and sickness absence, comparing outcomes before and after exposure to training and sanctions. We find that training improves cardiovascular and mental health and lowers sickness absence. The results suggest that this is not due to improved employment prospects but rather to instantaneous features of participation such as, perhaps, the adoption of a more rigorous daily routine. Unemployment benefits sanctions cause a short-run deterioration of mental health, possibly due higher stress levels, but this tapers out quickly.
Work in Progress
Complexity and the Effectiveness of Public Policies (with S. Altmann, S. Cairo and A. Sebald)
Punishing the Poor? Work Requirements and the Threat of Benefit Sanctions for Welfare Recipients (with S. Cairo)
Digital Tools to Facilitate Job Search (with S. Altmann, A. Glenny and A. Sebald)
Helping the Unemployed through Statistical Profiling? (with N. Harmon and M. Rasmussen)
The Costs of Promoting Labor Market Mobility: Mobility Assistance Programs and Job Search Strategies (with M. Caliendo and S. Künn)