Distributional Consequences of Labor Demand Adjustments to a Downturn: A Model-Based Approach with Applications to Germany 2008-09

Macro-level changes can have substantial effects on the distribution of resources at the household level. While it is possible to speculate about which groups are likely to be hardesthit, detailed distributional studies are still largely backward-looking. This paper suggests a straightforward approach to gauge the distributional and fiscal implications of large output changes at an early stage. We illustrate the method with an evaluation of the impact of the 2008-2009 crisis in Germany. We take as a starting point a very detailed administrative matched employer-employee dataset to estimate labor demand and predict the effects of output shocks at a disaggregated level. The predicted employment effects are then transposed to household-level microdata, in order to analyze the incidence of rising unemployment and reduced working hours on poverty and inequality. We focus on two alternative scenarios of the labor demand adjustment process, one based on reductions in hours (intensive margin) and close to the German experience, and the other assuming extensive margin adjustments that take place through layoffs (close to the US situation). Our results suggest that the distributional and fiscal consequences are less severe when labor demand reacts along the intensive margin.Labor demand, tax-benefit system, crisis, income distribution

Distributional Consequences of Labor Demand Adjustments to a Downturn: A Model-Based Approach with Application to Germany 2008-09

Macro-level changes can have substantial effects on the distribution of resources at the household level. While it is possible to speculate about which groups are likely to be hardest-hit, detailed distributional studies are still largely backward-looking. This paper suggests a straightforward approach to gauge the distributional and fiscal implications of large output changes at an early stage. We illustrate the method with an evaluation of the impact of the 2008-2009 crisis in Germany. We take as a starting point a very detailed administrative matched employer-employee dataset to estimate labor demand and predict the effects of output shocks at a disaggregated level. The predicted employment effects are then transposed to household-level microdata, in order to analyze the incidence of rising unemployment and reduced working hours on poverty and inequality. We focus on two alternative scenarios of the labor demand adjustment process, one based on reductions in hours (intensive margin) and close to the German experience, and the other assuming extensive margin adjustments that take place through layoffs (close to the US situation). Our results suggest that the distributional and fiscal consequences are less severe when labor demand reacts along the intensive margin.labor demand, tax-benefit system, crisis, income distribution

Distributional Consequences of Labor Demand Adjustments to a Downturn: A Model-based Approach with Application to Germany 2008-09

Macro-level changes can have substantial effects on the distribution of resources at the household level. While it is possible to speculate about which groups are likely to be hardest-hit, detailed distributional studies are still largely backward-looking. This paper suggests a straightforward approach to gauge the distributional and fiscal implications of large output changes at an early stage. We illustrate the method with an evaluation of the impact of the 2008-2009 crisis in Germany. We take as a starting point a very detailed administrative matched employer-employee dataset to estimate labor demand and predict the effects of output shocks at a disaggregated level. The predicted employment effects are then transposed to household-level microdata, in order to analyze the incidence of rising unemployment and reduced working hours on poverty and inequality. We focus on two alternative scenarios of the labor demand adjustment process, one based on reductions in hours (intensive margin) and close to the German experience, and the other assuming extensive margin adjustments that take place through layoffs (close to the US situation). Our results suggest that the distributional and fiscal consequences are less severe when labor demand reacts along the intensive margin.Labor demand, Tax-benefit system, Crisis, Income Distribution

Distributional Consequences of Labor-demand Shocks: The 2008-09 Recession in Germany

The distributional consequences of the recent economic crisis are still broadly unknown. While it is possible to speculate which groups are likely to be hardest-hit, detailed distributional studies are still largely backward-looking due to a lack of real-time microdata. This paper studies the distributional and fiscal implications of output changes in Germany 2008-09, using data available prior to the economic downturn. We first estimate labor demand on 12 years of detailed, administrative matched employer-employee data. The distributional analysis is then conducted by transposing predicted employment effects of actual output shocks to household-level microdata. A scenario in which labor demand adjustments occur at the intensive margin (hour changes), close to the German experience, shows less severe effects on income distribution compared to a situation where adjustments take place through massive layoffs. Adjustments at the intensive margin are also preferable from a fiscal point of view. In this context we discuss the cushioning effect of the tax-benefit system and the conditions under which German-style work-sharing policies can be successful in other countries.labor demand, output shock, tax-benefit system, crisis, income distribution

Unified Enterprise Knowledge Representation with Conceptual Models - Capturing Corporate Language in Naming Conventions

Conceptual modeling is an established instrument in the knowledge engineering process. However, a precondition for the usability of conceptual models is not only their syntactic correctness but also their semantic comparability. Assuring comparability is quite challenging especially when models are developed by different persons. Empirical studies show that such models can vary heavily, especially in model element naming, even if they are meant to express the same issue. In contrast to most ontology-driven approaches proposing the resolution of these differences ex-post, we introduce an approach that avoids naming differences in conceptual models already during modeling. Therefore we formalize naming conventions combining domain thesauri and phrase structures based on a linguistic grammar. This allows for guiding modelers automatically during the modeling process using standardized labels for model elements, thus assuring unified enterprise knowledge representation. Our approach is generic, making it applicable for any modeling language

Tax policy and income inequality in the U.S., 1978—2009: A decomposition approach

We assess the effects of U.S. tax policy reforms on inequality by applying a new decomposition method that allows us to disentangle mechanical effects due to changes in pre-tax incomes from direct effects of policy reforms. While tax reforms implemented under Democrat administrations, in particular the EITC reforms in the 1990s and the ARRA in 2009, had an equalizing effect at the lower half of the distribution, the disequalizing effects of Republican reforms are due to tax cuts for high-income families. As a consequence of partisan politics, overall policy effects almost cancel out over the whole time period.Tax policy, Inequality, Redistribution, Political Economy, Great Recession

Tax Policy and Income Inequality in the U.S., 1978-2009: A Decomposition Approach

We assess the effects of U.S. tax policy reforms on inequality by applying a new decomposition method that allows us to disentangle mechanical effects due to changes in pre-tax incomes from direct effects of policy reforms. While tax reforms implemented under Democrat administrations, in particular the EITC reforms in the 1990s and the ARRA in 2009, had an equalizing effect at the lower half of the distribution, the disequalizing effects of Republican reforms are due to tax cuts for high-income families. As a consequence of partisan politics, overall policy effects almost cancel out over the whole time period.political economy, redistribution, inequality, tax policy, Great Recession

A conceptual modeling approach for supply chain event management (SCEM)

The management of supply chains is a very comprehensive task. Predictability and response to incidents in process executions are challenging. With Supply Chain Event Management (SCEM), researchers propose an approach for overcoming these problems through proactive monitoring and notification of crucial process activities across the supply chain. The identification and definition of such crucial activities and information needs are necessary to handle possible abnormalities although they are challenging task which have not been solved in SCEM research so far. Hence, we propose a modeling approach which allows the conceptual specification of an adequate information exchange along the supply chain. With our approach we focus on the specification of relevant logistical objects, the definition of possible events, and the design of notifications for decision makers in the supply chain