Labour Market

Studies on the labour market differ from analyses of other markets for various reasons: Among other reasons, the quality of labour is generally difficult to evaluate, employees make their own decisions (e.g., they can influence their work intensity and job losses have not only economic, but also psychological and social components) and work does not only consists of an exchange of work for money, but is a fundamental element of life. This strong direct connection with people’s lives implies that non-monetary as well as monetary aspects play a special role on the labour market, such as issues relating to the working environment, risks, fairness, flexibility of working hours and work-life balance. Demographic and social change (e.g., through immigration, ageing and changing participation patterns), developments in the education system and technological progress (particularly digitalisation and globalisation) also influence the labour market. This diversity of actors and issues makes the labour market a politically highly regulated market: examples include regulations on protection against dismissal, regulations on safety in the workplace, state regulation of admission to vocational training and the wage determination process.

Inequalities in the labour market arise, amongst other reasons, from the different conditions and opportunities for certain social groups. Closely linked to the issues of the education system and housing market, the Institute of Economic Policy examines questions related to the labour market integration of individuals with a migration background. Apart from regular analyses of the wage gap development, the (heterogeneous) effects of political instruments (e.g., the minimum wage) are also evaluated. Where possible, the analyses consider monetary (wages and employment) and non-monetary outcomes (e.g., health and stress).

The gender pay gap, that is, the pay gap between women and men, is an important indicator of gender-specific inequality in the labour market. The reasons for this gap are manifold and start with traditional role models, differences in the duration or choice of education, the compatibility of family and career, and behavioural differences in competition. In our research, we analyse selected issues at the interfaces to other research fields (e.g., education system or higher education and science system) on the basis of extensive individual data using micro-econometric methods.

Demographic changes, digitalisation and computerisation accelerate the transformation of the labour market. This is associated with changes in the demand for labour, which leads to labour market imbalances and changes of the demand for qualifications - also over the course of one's life. At the same time, the forms and self-perception of work are changing too (e.g., through remote work, freelancing, etc.). Closely linked to this is the question about the suitability and adequacy of current workplace regulations, for example, on occupational health and safety or work-life balance.

Asankulova, Z. & Thomsen, S. (2024). Studying Abroad Experience and the Wages of Females. Higher Education, 87, 401–431. https://doi.org/10.1007/s10734-023-01013-z.

Ingwersen, K. & Thomsen, S. (2024). Workload Disparities and Their Role in the Health of Migrants and Natives in Germany. BMC Public Health, 24:2164, 1-14. https://doi.org/10.1186/s12889-024-19606-3.

Thomsen, S. & Trunzer, J. (2024). Did the Bologna Process Challenge the German Apprenticeship System? Evidence from a Natural Experiment. Journal of Human Capital, Vorabveröffentlichung online. https://doi.org/10.1086/730273.

Ingwersen, K. & Thomsen, S. (2022). Minimum Wage in Germany: Countering the Wage and Employment Gap between Migrants and Natives?, IZA Discussion Paper No. 15823, Bonn. https://docs.iza.org/dp15823.pdf.

Thomsen, S. & Weilage, I. (2022). Transformation durch Algorithmen im kaufmännischen Bereich: Substituierbarkeitspotenziale und Handlungsfelder zur Begleitung des Wandels. Stiftung Arbeit und Umwelt der IGBCE, Berlin. https://www.arbeit-umwelt.de/wp-content/uploads/220831_ig_publikationen_substituierbarkeitspotenzial_2.pdf.

Gulden, V. & Thomsen, S. (2021). Frauen in Führungspositionen: Chancen und Risiken durch die COVID19-Pandemie. Wirtschaftsdienst 101(4), 305-308. https://doi.org/10.1007/s10273-021-2900-y.

Ingwersen, K. & Thomsen, S. (2021). The Immigrant-Native Wage Gap Revisited. Journal of Economic Inequality 19, 825-854. https://doi.org/10.1007/s10888-021-09493-8.

Thomsen, S. (2020). Die Rolle der Computerisierung und Digitalisierung für Beschäftigung und Einkommen, in: Caspari, V. (Hrsg.), Einkommens- und Vermögensverteilung in historischer Sicht – Studien zur Entwicklung der ökonomischen Theorie XXXVII, Band 115, S. 125ff., Berlin: Duncker & Humblot. https://doi.org/10.3790/978-3-428-55754-7.