This article evaluates an expansion of employer-mandated sick leave from 80 to 100 percent of forgone gross wages in Germany. We employ and compare parametric difference-in-difference (DID), matching DID, and mixed approaches. Overall workplace absences increased by at least 10 percent or 1 day per worker per year. We show that taking partial compliance into account increases coefficient estima...

Whether early school stratification is conducive or detrimental to scholastic performance has been subject to controversial debates in educational policy and science across many countries. We exploit a unique exogenous variation in Lower Saxony, Germany, where performance based tracking was preponed from grade 7 to grade 5 in 2004, i.e. with the completion of primary school. In particular, we m...

This paper studies how IT investments shape the geography of firm innovation. We focus on the role of investments by US firms in basic internet technology on the organization of innovation. We combine establishment-level IT investment data with data on US patenting activity at the MSA level. Our difference-in-difference econometric estimation approach compares the citationweighted count of co-i...

On-demand ride-sharing, as one of the most representative sectors of sharing economy has received a lot of attention and significant debate. Limited conclusive empirical research has been done to investigate the social welfare of such service. In this research, we conduct difference-in-difference analysis to examine the impact of Uber, an on-demand appbased ride sharing service, on urban traffi...

We study the employees' demand for hospital parking. We estimate the effect of the employees' parking price on demand using a difference-in-differences methodology. The deadweight loss generated by non-optimal pricing of parking is at least 9% of the hospitals' parking resource costs. VU University, FEWEB, De Boelelaan, 1081 HV Amsterdam, the Netherlands; Email: [email protected] Jos van Omm...

We exploit the timing of the Cuban Missile Crisis and the geographical variation in mortality risks individuals faced across states to analyze reproduction decisions. The results of a difference-in-differences approach show evidence that fertility increased in states that are geographically closer to Cuba and states with more military installations. The findings suggest that when facing high mo...

For difference-in-differences (DD), the identification question in using three types of progressively more informative data is addressed: independent cross-sections, dmoverT panels, and dno-moverT panels. Although DD identifies dthe average effect on the treatedT, its meaning and the identification conditions differ across the data types. D 2006 Elsevier B.V. All rights reserved.

We examine the causal impact of financial analysts on firms’ socially responsible activities. Relying on brokerage closures and mergers as natural experiments which generate exogenous changes in analyst coverage, our Difference-in-Differences estimator indicates that a reduction in analyst coverage causes firms to engage more aggressively in irresponsible behavior, especially in the dimensions ...

This paper studies the effects of product market competition on the explicit compensation packages that firms offer to their CEOs, executives and workers. We use a large sample of both traded and non-traded UK firms and exploit a quasi-natural experiment associated to an increase in competition. The sudden appreciation of the pound in 1996 implied different changes in competition for sectors wi...

We study wage effects of two important elements of non-wage labour costs: firing costs and payroll taxes. We exploit a reform that introduced substantial reduction in these two provisions for unemployed workers aged less than 30 and over 45 years who got a permanent job. A matching model with heterogeneous workers predicts positive wage effects of reducing firing costs but ambiguous wage effect...