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European Research Council (ERC) Awards

CReAM's Director, Christian Dustmann has been awarded an ERC Advanced grant on The Migration Challenge: Labour Markets, Policy Reforms, and Social Cohesion.

UCL News

ERC News

CReAM's Deputy Director, Uta Schönberg has been awarded an ERC Consolidator grant on Wage Inequality.

UCL News

ERC News

Cutting refugees’ benefits results in more crime and less education

Reducing welfare benefits for refugees and immigrants is largely ineffective for increasing employment and promoting integration, and instead leads to poverty, ‘survival crime’ and less schooling, according to a new study from CReAM's Christian Dustmann and co-authors from the Rockwool Foundation.

This research received very high media attention in Denmark and has resulted in a public hearing (26.03.2019) and a presentation in the Danish Parliament.

Press Release

Discussion Paper

UCL News

Disadvantaged boys benefit most from early school years

Research by Christian Dustmann and Thomas Cornelissen finds that boys from disadvantaged backgrounds benefit most from early schooling, helping to narrow the skills gap (60-80%) with boys from high socio-economic backgrounds.

Press Release

Discussion Paper

UCL News

The Times

The Indepedent

Tes

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

 

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.