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The majority of empirical studies that centre on exporter performance and the determinants of export performance have focused mainly on the manufacturing sector, largely because there are very few datasets that facilitate a detailed investigation into the service sector. In 2008, however, the German Federal Statistical Office and the statistical offices of the Federal States released the German business services statistics panel (this dataset is described in more details in Chapter 2). Thus, for the first time, appropriate panel analyses of the export behaviour of German business services firms became possible. This thesis uses this panel dataset and contributes to the literature on the microeconometrics of international trade by providing evidence concerning the German business services sector. Overall, the results noted for exporter performance in the German business services sector correspond with those from the manufacturing sector. Chapter 3 shows that, similar to the manufacturing sector, exporting German business services firms are more productive and clearly larger (in terms of turnover and number of employed persons) than non-exporters, even when it is controlled for size and industry. Further, business services enterprises that export pay higher average wages (even when controlling for size and industry). When controlling for unobserved, time-invariant characteristics, the significant differences between exporters and non-exporters relative to productivity or average wages disappear, while significant export premia associated with the size variables continue to exist, but on a much smaller scale. Concerning the hypothesis that better performing enterprises self-select into export markets, the results indicate that in the business services sector as in the manufacturing sector, enterprises that begin to export are larger than non-exporters, even two years before they commence exporting operations. Regarding productivity (in terms of turnover per employed person) and average wages, the results were statistically significant only for business services enterprises in Germany’s western region. Aside from these similarities with the manufacturing sector, Chapter 4 presents evidence which suggests that, contrary to firms in the manufacturing industries, German business services firms do not benefit from exporting in terms of higher rates of profit. Chapter 4 documents a negative profitability differential of services exporters compared to non-exporters, and finds that export-starters in the business services sector are less profitable than non-exporters, even two years before they begin to export. Further, the estimated dose-response function, which is used to investigate the causal impact of exports on profits, shows an s-shaped relationship between profitability and firms’ export-sales ratio. Enterprises with a very small share of exports in total sales have a lower rate of profit than non-exporting firms. Then, with an increase in export intensity, the rate of profit increases as well. However, even at the maximum, the average profitability of the exporters is not, or is only slightly, higher than the average rate of profit of the non-exporting firms. Chapter 5 investigates the question which factors determine the export performance of German business services firms by estimating a model of the firms’ export intensity decision. Overall, the results support most of the explanations of export behaviour found in the literature for both service firms and manufacturing firms, such as the positive effects of size, human capital, and productivity. Yet when controlling for unobserved heterogeneity, the picture changes; notably, in the model with fixed effects, the significance of productivity and human capital disappears. This indicates that these variables are not positively related to the export performance per se, but are related instead to unobserved time-constant characteristics. Size still has a significant positive effect on exporting when controlling for unobserved effects. Finally, Chapter 6 considers the impact of the 2004 EU enlargement on service enterprises close to Germany’s eastern border by using regression-adjusted difference-in-differences estimators. The results suggest a small negative impact associated with the EU enlargement on export intensity and the turnover of large enterprises with an annual turnover of €250,000 or more, and no effect on the share of exporters and the turnover profitability of these enterprises. For small enterprises close to Germany’s eastern border, an increase in turnover and a decrease in profitability relative to other small enterprises are noted.
All of the papers contained in this thesis deal with some aspect of labor market inequality. The impact of September 11th, 2001 on the employment prospects of Arabs and Muslims in the German labor market (chapter 2) examines whether the attacks on the World Trade Center and the Pentagon on September 11th, 2001 have influenced the job prospects of persons from predominantly Muslim countries in the German labor market. Using a large, representative database of the German working population, evidence from regression-adjusted difference-in-differences-estimates indicates that 9/11 did not cause a severe decline in job prospects. This result, which is in line with prior evidence from Sweden and England, is robust over a wide range of control groups. Islamistic terror and the job prospects of Arab men in Britain: Does a country's direct involvement matter? (chapter 3) examines whether the labor market prospects of Arab men in England are influenced by recent Islamistic terrorist attacks. We use data from the British Labour Force Survey from Spring 1999 to Winter 2006 and treat the terrorist attacks on the USA on September 11th, 2001, the Madrid train bombings on March 11th, 2004 and the London bombings on July 7th, 2005 as quasi-experimental events that may have changed the attitudes towards Arab or Muslim men. Using treatment group definitions based on ethnicity, country of birth and religion, evidence from difference-in-differences-estimators combined with matching indicates that the real wages, hours worked and employment probabilities of Arab men were unchanged by the attacks. This finding is in line with prior evidence from Europe. Effects of the obligation to employ severely disabled workers - findings from the introduction of the Law to Combat Unemployment among Severely Disabled People'' (chapter 4) uses new administrative data from the German Federal Employment Agency -- the Integrated Employment Biographies Sample IEBS -- to assess the impact of a mandatory employment quota for disabled workers in Germany. We use an exogenous change, introduced through the Law to Combat Unemployment among Severely Disabled People'' (Gesetz zur Bekämpfung der Arbeitslosigkeit Schwerbehinderter''), as a natural experiment and measure the change in the reemployment probability of the unemployed disabled by means of regression-adjusted difference-in-differences estimators. Our results indicate that the change in the employment quota neither enhanced nor worsened the employment prospects of the disabled. Finally, Intra-firm wage inequality and firm performance -- First evidence from German linked employer-employee-data (chapter 6) deals with the impact of wage inequality on firm performance. Economic theory suggests both positive and negative relationships between intra-firm wage inequality and productivity. This paper contributes to the growing empirical literature on this subject. We combine German employer-employee-data for the years 1995-2005 with inequality measures using the whole wage distribution of a firm and rely on panel-instrumental variable estimators to control for unobserved heterogeneity and simultaneity problems. Our results indicate a relatively small impact of wage inequality on firm performance in West Germany, while there seems to be a relationship for some inequality measures in East Germany. Further analysis shows that the relationship varies strongly with industrial relations in East Germany.
Fostering socio-economic development throughout all Member States is a fundamental goal of the European Union. With one third of its budget, the EU tries to support regional development in lessdeveloped regions and improve the life of its citizens. To reach its goal, a shift can be observed from a single sided focus on factor mobility and thus transportation and other infrastructure facilities to a higher diversity in approaches, including culture, the arts and creativity. Here, creative industries and innovation are keywords within Structural Funds, the main instrument of EU regional policies. However, very little is known on how cultural operators in the form of artists, opera houses etc. contribute to regional development by implementing Structural Funds projects. The framework conditions set on EU level are very open, allowing the sector to contribute in their own way to socioeconomic development. To improve the understanding of how cultural operators access Structural Funds this dissertation was guided by the question: What kind of strategies do cultural operators use to access Structural Funds in Poland? Or on a more abstract level: What are the formal and informal norms within the application process for cultural operators, and in which way do they impact the application strategies of cultural operators in Poland? By working on those questions, this dissertation is providing an insight into how cultural operators on the ground approach Structural Funds. The case study on cultural operators in Poland serves as a concrete example and gives a clearer picture of access strategies, barriers and facilitators within this process. Because research is scarce on this subject, a choice for an in-depth case study analysis within one country was taken. With a theoretical framework of sociological Neo Institutionalism, especially a model developed by Victor Nee and Paul Ingram (1998), the research focusses on different levels of interaction and the role of formal and informal norms. The model was modified to support the analysis of actors’ strategies, and explain the application process of cultural operators. Here, the focus was on the micro level (cultural operators) and its interaction with the meso level (national). The model was enriched at the end of the research with elements of Bourdieu’s theory of practise, namely his concepts of fields and capital. Poland was selected as case study country due to its unique position as the biggest new Member State with its long cultural tradition at the heart of Europe and a very positive formal framework for cultural projects within Structural Funds. The focus was on the years 2004-2007 and thus covered mainly the first funding period for Poland. As empirical evidence, 27 expert interviews were carried out with cultural operators and their environment in Poland. They were analysed on a qualitative basis, using Atlas.ti, and co-occurrence network views. The author conducted all interviews within a period of two months, and most of the interviews were conducted in English. Important steps within the analysis were the emergence of a project idea, the ‘melting’ of this idea into a project application, different challenges linked to the application process and information gathering as a crucial factor within this process. In the end, the findings were validated by three EU experts from the Commission and the European Parliament. Conclusions: Findings show that the application strategy is driven by a set of formal and informal norms. Among them one can find elements linked to financing and co-financing, access and distribution of information and capacity building in the form of knowledge gathering and experience. The informal channels proved to be especially valuable. Further, the organisation resources have a significant impact when applying for Structural Funds. This is not limited to sufficient financial means but also related to existing networks and knowledge of whom to ask for information and support. Here, reference can be made e.g. to Bourdieu’s concept of capitals. Based on those findings, a typology of three different actors’ groups with different challenges and project profiles was developed. It can be shown that their positions and strategies are influenced, not only by formal rules and norms, but also to a high level, by informal norms and structures. As a result, projects were generally implemented by rather big and well-established organisations. Most of them focussed on the conservation of cultural heritage or the construction of new, ‘classical’ cultural infrastructure such as museums and opera houses. However, innovation and creativity are thought to grow especially in smaller, often younger and ‘different’ settings. As the EU is interested in those elements to find a region-tailored solution to socio-economic development needs, a nearly exclusive focus on rather traditional flagship projects implemented by well-established organisations appears insufficient: In other words, there is a discrepancy between proclaimed possibilities and attempts within political statements and Structural Funds rules on one side and the picture on the ground on the other side. Thus, if the fostering of socio-economic development through innovation and new approaches is to emerge, attempts need to be taken to increasingly support cultural operators with less favourable given capital. The thesis presented enhances knowledge within these processes and therefore contributes to the improvement of the situation. Because only if conditions are analysed and known, processes on national and EU level can change and alternatives be considered. As a conclusion for the micro level, a strong networking and gathering of know-how independently from formal structures seems the most promising short-term approach. From a long-term perspective, a formalisation of networks and stronger lobbying, especially on national level but also on EU level will be needed if framework conditions are to change in favour of a more diversified and flexible approach.