Hannah Illing

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Welcome!

I am a postdoctoral researcher at the Institute for Applied Microeconomics at the University of Bonn. I am also a research associate in the research group of the director at the Institute for Employment Research (IAB), and an associated member at the IZA.

My main field is labor economics, with a focus on gender and migration. My research is motivated by understanding the sources behind labor market disparities, often in combination with economic shocks. I currently study the role of firms’ wage setting practices for the gender wage gap, the impact of sudden worker outflows on workers and firms, and the labor market effects of natural disasters.

I am a member of the Collaborative Research Center Transregio 224 and of the Cluster of Excellence ECONtribute: Markets & Public Policy.

I visited Boston University in 2019, and UC Berkeley in 2024.

Download my CV.

Publications and Accepted Papers

The Gender Gap in Earnings Losses after Job Displacement

Abstract

We compare men and women who are displaced from similar jobs by applying an event study design combined with propensity score matching and reweighting to administrative data from Germany. After a mass layoff, women’s earnings losses are about 35% higher than men’s, with the gap persisting five years after displacement. This is partly explained by women taking up more part-time employment, but even women’s full-time wage losses are almost 50% higher than men’s. Parenthood magnifies the gender gap sharply. Finally, displaced women spend less time on job search and apply for lower-paid jobs, highlighting the importance of labor supply decisions.

Crossing Borders: Labor Market Effects of European Integration

Abstract

This paper investigates an EU policy reform that granted Czech citizens full access to the German labor market. Exploiting the fact that the reform specifically impacted the Czech and German border regions, I use a matched difference-in-differences design to estimate local labor markets effects in both countries. I show that the Czech border region experienced a decline in unemployment rates and an increase in vacancies, while local labor markets in Germany remained unaffected. Overall, my findings suggest that the Czech border region faced labor shortages, while local labor markets in Germany were able to fully absorb the migrant inflow.

Working Papers

Hiring and the Dynamics of the Gender Gap

Abstract

We investigate how the same hiring opportunity leads to different labor market outcomes for male and female full-time workers. Using administrative data from Germany spanning 1981 to 2016, we analyze firms’ wage-setting behavior in response to exogenous vacancies caused by sudden worker deaths. By identifying external replacement workers, we compare positions that, ex-ante, are equally likely to hire a male or female worker. Our analysis shows that female replacement workers’ starting wages are, on average, 11 log points lower than those of equally productive male counterparts. This gap is unlikely to be explained by differences in hours, within-firm adjustments, or outside options. Instead, the results suggest that firms may statistically discriminate by gender and that differences in worker bargaining play an important role. The gender hiring opportunity gap is lower in contexts where gender equality norms are stronger. These findings suggest that a significant portion of the gender wage gap originates within firms at the hiring stage, contributing to our understanding of the mechanisms behind persistent gender disparities in wages.

The Labor Market Costs of Job Displacement by Migrant Status

Abstract

This paper examines the differential impact of job displacement on migrants and natives. Using administrative data for Germany from 1997-2016, we identify mass layoffs and estimate the trajectory of earnings and employment of observationally similar migrants and natives displaced from the same establishment. Despite similar pre-layoff careers, migrants lose an additional 9% of their earnings in the first 5 years after displacement. This gap arises from both lower re-employment probabilities and post-layoff wages and is not driven by selective return migration. Key mechanisms include sorting into lower-quality firms and depending on lower-quality coworker networks during job search.

Work in Progress

Mobility and the Labor Market Effects of Being Affected by a Flood Event

The Impact of a Forced Migrant Outflow on Firms and Workers

The Impact of Job Disruptions on Households During the Covid-19 Pandemic

Contact

Institute for Applied Microeconomics (IAME)
University of Bonn
Adenauerallee 24–42
53113 Bonn, Germany