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Recent research in economics emphasizes the role of in utero conditions for the health endowment at birth and in early childhood and for social as well as economic outcomes in later life. This paper analyzes the relation between maternal mental health during pregnancy and birth outcomes of the child. In particular, we analyze the relationship between maternal mental health during pregnancy and the probability of giving birth preterm (PT), having a newborn at low birth weight (LBW) or being small for gestational age (SGA). Based on large population-representative data from the German Socio-Economic Panel (SOEP) and cohort data from the National Educational Panel Study (NEPS), we present extensive descriptive evidence on the relationship between maternal mental health and preterm birth by carrying out OLS estimates controlling for a wide range of socioeconomic characteristics. In addition, we apply matching estimators and mother fixed effects models, which bring us closer toward a causal interpretation of estimates. In summary, the results uniformly provide evidence that poor maternal mental health is a risk factor for preterm birth and low birth weight in offspring. In contrast, we find no evidence for an relationship between maternal mental health and small for gestational age at birth.

Attendance in special education (SE) is more common among individuals born preterm than among those born at term. Less is known about school grades of those born preterm in mainstream education (ME), and how these grades predict later educational attainment. This population-based register-linkage study assessed (1) attendance in SE, and then focused on those in ME by assessing (2) school grades at 16 year, (3) completed educational level at 25 year, and (4) school grades as predictors for completed education by gestational age (GA) with full-term birth (39–41 completed weeks) as reference. The sample comprised 223,744 individuals (10,521 preterm, 4.7%) born in Finland (1/1987–9/1990). Of the sample, 4.9% attended SE. Those born preterm had up to 5.5-fold rates for SE. In ME, those born extremely preterm (EPT) had marginally lower mathematics grades compared with full-term counterparts, whilst those born late preterm or early term had slightly higher grades. Those born EPT or very preterm had lower physical education grades in ME. However, the minor differences in school grades according to GA appear not to translate into educational differences in young adulthood. The associations between school grades at 16 year and completed education at 25 year did not vary by GA.

The IAB's Sample of Integrated Labour Market Biographies (SIAB) and the Socio-Economic Panel (SOEP) are the two data sets most commonly used to analyze wage inequality in Germany. While the SIAB is based on administrative reports by employers to the social security system, the SOEP is a survey data set in which respondents self-report their wages. Both data sources have their specific advantages and disadvantages. The objective of this study is to describe and compare the evolution of wage inequality for these two types of data. For this purpose, different sample restrictions are applied. The comparison without any harmonization of the data shows different levels and trends. When the information is largely harmonized, comparable trends and similar levels emerge.

This paper estimates sibling correlations in cognitive and non-cognitive skills to evaluate the importance of family background for skill formation. Based on a large representative German dataset including IQ test scores and measures of non-cognitive skills, a restricted maximum likelihood model indicates a strong relationship between family background and skill formation. Sibling correlations in non-cognitive skills range from 0.22 to 0.46; therefore, at least one-fifth of the variance in these skills results from shared sibling-related factors. Sibling correlations in cognitive skills are higher than 0.50; therefore, more than half of the inequality in cognition can be explained by shared family background. Comparing these findings with those in the intergenerational skill transmission literature suggests that intergenerational correlations capture only part of the influence of family on children’s cognitive and non-cognitive skills, as confirmed by decomposition analyses and in line with previous findings on educational and income mobility.

We examine intergenerational mobility differences between Germany, Norway, Sweden, and the US. Using ranks, we find that the US is substantially less intergenerationally mobile than the three European countries and that the most mobile region of the US is less mobile than the least mobile regions of Norway and Sweden. Using a linear estimator of income share mobility, we find that the four countries have very similar rates of intergenerational mobility. However, when we use non-parametric versions of rank and income share mobility, we find that the US tends to experience lower upward mobility at the bottom of the income distribution than Norway and Sweden.

This paper is the first to analyze the impact of family background on permanent earnings based on sibling correlations in Germany and to provide a cross-country comparison of Germany, Denmark, and USA. The main findings are that family and community background has a stronger influence on permanent earnings in Germany than in Denmark, and a comparable influence is found in USA. This holds true for both male and female siblings. A deeper analysis of Germany shows that family background also plays an important role in explaining variations in family income, wages, education, and risk attitudes.

Does birth order shape people’s propensity to take risks? Evidence is mixed. We used a three-pronged approach to investigate birth-order effects on risk taking. First, we examined the propensity to take risks as measured by a self-report questionnaire administered in the German Socio-Economic Panel, one of the largest and most comprehensive household surveys. Second, we drew on data from the Basel–Berlin Risk Study, one of the most exhaustive attempts to measure risk preference. This study administered 39 risk-taking measures, including a set of incentivized behavioral tasks. Finally, we considered the possibility that birth-order differences in risk taking are not reflected in survey responses and laboratory studies. We thus examined another source of behavioral data: the risky life decision to become an explorer or a revolutionary. Findings from these three qualitatively different sources of data and analytic methods point unanimously in the same direction: We found no birth-order effects on risk taking.

In this paper, we present sibling and neighbor correlations in school grades and cognitive skills, as well as indicators of physical and mental health, for a sample of German adolescents. In a first step, we estimate sibling correlations and find a substantial influence of shared family and community background on all outcomes. To further disentangle the influence of family background and neighborhood, we estimate neighbor correlations. Our results show that for all outcomes, the estimated neighbor correlations are clearly lower than the estimated sibling correlations. However, especially for cognitive skills and mental health, neighbor correlations are still substantial in relation to sibling correlations. Thus, compared to existing results from other countries, the influence of the neighborhood on these outcomes is not negligible in Germany.

Zusammenfassung Die mit der Umsetzung des vierten Gesetzes für moderne Dienstleistungen am Arbeitsmarkt erfolgte Zusammenlegung von Arbeitslosen- und Sozialhilfe stellte eine grundlegende Änderung im System der deutschen Arbeitslosenunterstützung dar. Im vorliegenden Artikel wird anhand von Befragungsdaten aus einer Querschnittsbefragung des Instituts für Arbeitsmarkt- und Berufsforschung untersucht, welche Effekte die neue Gesetzeslage auf die ehemaligen Bezieher von Arbeitslosenhilfe hatte. Für 11%% dieser Gruppe kann davon ausgegangen werden, dass sie aufgrund des Systemwechsels keine Leistungsansprüche mehr haben. Des Weiteren kann gezeigt werden, dass insbesondere Paarhaushalte, ältere Personen und Personen mit Wohneigentum eine hohe Wahrscheinlichkeit zur Beendigung des Leistungsbezugs besitzen. Assessing the Distributional Effects of German Labour Market Reforms on Former Recipients of Unemployment Assistance: An Empirical Analysis using Survey Data The implementation of the Fourth Law for Modern Services in the Labour Market (the so-called Hartz IV reform) marked a major change in Germany's system of unemployment assistance. This paper analyses the distributional effects of the reform for former recipients of unemployment assistance. Using cross-sectional data from a survey carried out by the Institute for Employment Research, we found that 11%% of this group are likely to lose their claims to any benefit payments because of the changes introduced as part of the new system of unemployment assistance. More specifically, our results show that people living in two-person households, older former recipients of unemployment assistance and home-owners have a higher probability of losing their claims to welfare payments.