Nicola Fuchs-Schündeln’s research while affiliated with Goethe University Frankfurt and other places

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Publications (59)


Fraction of the respondents from West and East who believe that the financial security is the responsibility of the state. Unbalanced sample.
(continued) Dependent variable: responsibility for financial security. . .
Regressions with those who were born in 1990-1999, including parents' preferences. Dependent variable: responsibility for financial security. . . ...when ...when ...of the ...when ...when requiring
Good Bye Lenin Revisited: East-West Preferences Three Decades after German Reunification
  • Article
  • Full-text available

February 2023

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57 Reads

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5 Citations

German Economic Review

Mariia Bondar

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Nicola Fuchs-Schündeln

In this paper, we document that living under Communism versus Capitalism has lasting effects on preferences for a strong government. Relying on the natural experiment of German reunification and extending the analysis of Alesina and Fuchs-Schündeln (2007), we show that East Germans still have stronger preferences for redistribution than West Germans 27 years after reunification. While convergence of preferences occurs, the speed of convergence decreases significantly over time. Evidence from cohorts born after German reunification points towards significant intergenerational transmission of preferences.

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The Fiscal and Welfare Effects of Policy Responses to the Covid-19 School Closures

February 2023

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14 Reads

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9 Citations

IMF Economic Review

Nicola Fuchs-Schündeln

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Irina Popova

Based on data on school visits from Safegraph and on school closures from Burbio, we document that during the Covid-19 crisis secondary schools were closed for in-person learning for longer periods than elementary schools, private schools experienced shorter closures than public schools, and schools in poorer US counties experienced shorter school closures. To quantify the long-run consequences of these school closures, we extend the structural life cycle model of private and public schooling investments by Fuchs-Schündeln et al. (Econ J 132:1647–1683, 2022) to include private school choice and feed into the model the school closure measures from our empirical analysis. Future earnings and welfare losses are largest for children that started public secondary schools at the onset of the Covid-19 crisis. Comparing children from the top to children from the bottom quartile of the income distribution, welfare losses are 0.5 percentage points larger for the poorer children if school closures were unrelated to income. Accounting for the longer school closures in richer counties reduces this gap by about 1/4. A policy intervention that extends schools by 6 weeks generates significant welfare gains for children and raises future tax revenues sufficient to pay for the cost of this schooling expansion.




Covid-Induced School Closures in the US and Germany: Long-Term Distributional Effects

September 2022

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72 Reads

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6 Citations

Economic Policy

Almost all countries worldwide closed schools at the outbreak of the Covid-19 crisis. I document that schooling time dropped on average by -55% in the US and -45% in Germany from the onset of the crisis to the summer of 2021. In the US, schools were closed longer in richer than in poorer areas, while in Germany the regional variation is much smaller. However, Germany exhibited substantial variation by grade level, with a strong U-shaped patterns that implies that children attending middle school faced the longest closures. A structural model of human capital accumulation predicts that the US school closures on average lead to a reduction of life-time earnings of –1.8% for the affected children. While the overall losses are likely somewhat smaller in Germany, the socio-economic gradient in the losses could be larger than in the US, leading to increased inequality and decreased intergenerational mobility.


Structural Change in Labor Supply and Cross-Country Differences in Hours Worked

May 2022

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13 Reads

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17 Citations

Journal of Monetary Economics

This paper studies how structural change in labor supply along the development spectrum shapes cross-country differences in hours worked. We emphasize two main forces: sectoral reallocation from self-employment to wage work, and declining fixed costs of wage work. We show that these forces are crucial for understanding how the extensive margin (the employment rate) and intensive margin (hours per worker) of aggregate hours worked vary with income per capita. To do so we build and estimate a quantitative model of labor supply featuring a traditional self-employment sector and a modern wage-employment sector. When estimated to match cross-country data, the model predicts that sectoral reallocation explains more than half of the total hours decrease at lower levels of development. Declining fixed costs drive the rise in employment rates at higher levels of income per capita, and imply higher hours in the future, in contrast to the lower hours resulting from income effects and expansions in tax-and-transfer systems.


The Long-Term Distributional and Welfare Effects of Covid-19 School Closures

April 2022

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30 Reads

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54 Citations

The Economic Journal

Using a structural life-cycle model, we quantify the heterogeneous impact of school closures during the Corona crisis on children affected at different ages and coming from households with different parental characteristics. In the model, public investment through schooling is combined with parental time and resource investments in the production of child human capital at different stages in the children’s development process. We quantitatively characterize the long-term consequences from a Covid-19 induced loss of schooling, and find average losses in the present discounted value of lifetime earnings of the affected children of 2.1%2.1\%, as well as welfare losses equivalent to about 1.2%1.2\% of permanent consumption. Due to self-productivity in the human capital production function, younger children are hurt more by the school closures than older children. The negative impact of the crisis on children’s welfare is especially severe for those with parents with low educational attainment and low assets.



Statusbericht zum Frauenanteil in der Volkswirtschaftslehre an deutschen Universitäten

June 2021

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24 Reads

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8 Citations

Perspektiven der Wirtschaftspolitik

Zusammenfassung In diesem Artikel stellen wir die Ergebnisse einer ersten systematischen Erhebung des Frauenanteils in der Volkswirtschaftslehre an deutschen Universitäten auf allen Karriereebenen dar. Unsere Zahlen verdeutlichen, dass Frauen auf allen Stufen unterrepräsentiert sind. Dabei fällt der Frauenanteil von der Assistenzprofessur zur „vollen“ Professur stark ab: Nur 15 Prozent der volkswirtschaftlichen Lehrstühle werden von Frauen besetzt. In Österreich und der Schweiz ist der Frauenanteil unter den Professuren ähnlich niedrig, in den meisten anderen europäischen Ländern jedoch höher. Der Frauenanteil variiert erheblich zwischen den Forschungsfeldern und ist besonders gering in den Bereichen Makroökonomie und Finanzen. Wir weisen auf potentielle Ursachen, Konsequenzen und Maßnahmen hin, um dem Problem der geringen Repräsentation von Frauen in unserer Profession entgegenzuwirken.



Citations (45)


... Eine Ostdeutsche oder ein Ostdeutscher ist demnach eine in der DDR geborene und dort bzw. in den neuen Bundesländern aufgewachsene Person. Da bedeutsame Unterschiede, beispielsweise in Bezug auf Präferenzunterschiede und Erwartungshaltungen an den Staat auch in Generationen gefunden wurden, die im wiedervereinigten Deutschland geboren und aufgewachsen sind (Bondar & Fuchs-Schündeln, 2023), werden nachfolgend denKategorien"westdeutsch" bzw. "westdeutsch sozialisiert" einerseits und "ostdeutsch" bzw. ...

Reference:

33 Jahre danach: Ostdeutsche in Führungspositionen des gesamtdeutschen Sports33 years later: east Germans in leadership positions in German sports
Good Bye Lenin Revisited: East-West Preferences Three Decades after German Reunification

German Economic Review

... Compared to wealthier school districts, districts serving larger proportions of non-white students in cities and areas with higher poverty were more likely to begin the 2020-21 school year with remote instruction (Hartney and Finger, 2020;Marshall and Bradley-Dorsey, 2020;Schweig et al., 2022). Private schools, which students from higher socioeconomic backgrounds mostly attend, were closed for significantly fewer days than public schools (Fuchs-Schündeln et al., 2021). Similarly, secondary schools were also more severely affected by disruptions than elementary schools. ...

The Fiscal and Welfare Effects of Policy Responses to the Covid-19 School Closures
  • Citing Article
  • February 2023

IMF Economic Review

... The presence of fixed costs has also become standard in quantitative models, (see, for example, Attanasio et al., 2018Attanasio et al., , 2005Attanasio et al., , 2008Guner et al., 2012). Bick et al. (2022) show how differences in fixed costs explain differences in employment rates across countries. Note that even though we do not have an hours margin in our model, the horizon of the model will be one month and thus over an annual horizon households will have a non-trivial choice of hours. ...

Structural Change in Labor Supply and Cross-Country Differences in Hours Worked
  • Citing Article
  • May 2022

Journal of Monetary Economics

... Furthermore, school closures had adverse consequences for families. First, the loss of schooling implies a substantial drop in lifetime earnings for affected children Fuchs-Schündeln, 2022). Second, over a fifth of US parents reported losing a job or income due to a lack of child care (Muñoz-Rivera et al., 2021). ...

COVID-Induced School Closures in the US and Germany: Long-Term Distributional Effects
  • Citing Article
  • January 2022

SSRN Electronic Journal

... 13 In our cost function, we account for the improving quality of remote learning over time by assuming that the amount of learning loss incurred by one week of school closure equates to one school-week initially and decreases linearly to 0 as a function of the cumulative number of past weeks spent under school closure, such that 0.35 school-years is the maximal 10 Hanushek & Woessmann [5] also estimate that a student missing 0.33 years of school leads to a loss in lifetime individual income of 3.0% in the US and 2.6% pooled globally. Fuchs-Schündeln et al. [126] find average losses of 2.1% in lifetime earnings and 1.2% in permanent consumption of children affected by COVID-19 school closure. Considering that Betthäuser et al. [2] report a learning deficit of 0.35 schoolyears accrued during COVID, the estimates of Hanushek & Woessmann [5] and Fuchs-Schündeln et al. [126] are quite similar. ...

The Long-Term Distributional and Welfare Effects of Covid-19 School Closures
  • Citing Article
  • April 2022

The Economic Journal

... "Below" identifies the estimate for schools that are below the median on fraction of high-needs students where fraction high need is based on fraction of students either FRPL, EL or with disabilities, and "Above" identifies estimates for schools that are above the median. † Ref. 28 indirectly gets at student take-up by using cell phone data to determine the extent of actual in-person school attendance, but it cannot separate in-person offering from actual student take-up. ‡ While students who comply with in-person offerings may differ from those students who remain remote, we document minimal bias of estimates from selection on observables by showing that these within-school estimates are very stable as student-level controls are added. ...

The Fiscal and Welfare Effects of Policy Responses to the COVID-19 School Closures
  • Citing Article
  • January 2021

SSRN Electronic Journal

... Over the past decades, evidence has begun to accumulate suggesting that the trade-off between female employment and childbearing, too, has weakened and, to some extent, reversed in many countries (Doepke et al. 2023). This tendency can essentially be attributed to five causes: (a) increasingly effective family policies (for a survey, see Olivetti & Petrongolo 2017), in particular in the areas of public childcare (Bauernschuster et al. 2016, d'Albis et al. 2017, family leave (Lalive & Zweimüller 2009, Raute 2019, taxation (Bick & Fuchs-Schündeln 2018), and benefit schemes (Riphahn & Wiynck 2017, González & Trommlerová 2023; (b) technological enhancements that relax the trade-off among childbearing, child-rearing, and employment, including improved birth control (oral contraceptives, abortions) (Goldin & Katz 2002, Ananat et al. 2009) and reproductive health (Albanesi & Olivetti 2016) that have helped to reconcile planned parenthood and career from the middle of the twentieth century, methods of fertility treatment (Sommer 2016, de la Croix & Pommeret 2021) that help to delay parenthood and thereby mitigate the child penalty, and technological progress in respect to household production (Greenwood et al. 2005); (c) fathers assuming a stronger role in childcare, which, through a more balanced time allocation within the household, relaxes the trade-off in employment at the household level (e.g., Feyrer et al. 2008, de Laat & Sevilla-Sanz 2011, Fanelli & Profeta 2021; (d) more agreement on fertility choices within couple bargaining (Testa et al. 2014, Doepke & Kindermann 2019; and (e) changes in social norms, as Section 2.5 discusses in greater detail. ...

Taxation and Labor Supply of Married Couples Across Countries: A Macroeconomic Analysis
  • Citing Article
  • January 2017

SSRN Electronic Journal

... Women and men in essential occupations were affected quite similarly, yet women in nonessential occupations were more likely than men to lose their jobs and experienced greater reductions in work hours and earnings (Meekes et al. 2023). Compared to women in essential occupations, women in nonessential occupations were more harshly affected by the closing of childcare facilities and schools, the inability to outsource household tasks, and the additional informal care tasks during COVID-19 than men (Alon et al. 2022;Fuchs-Schündeln et al. 2020). The increased time spent in household work reduced women's labor market participation more steeply than men's (André et al. 2021;Del Boca et al. 2020;Hupkau and Petrongolo 2020;Oreffice and Quintana-Domeque 2021). ...

The Short-Run Macro Implications of School and Child-Care Closures
  • Citing Article
  • January 2020

SSRN Electronic Journal

... Based on country panel data, Bick et al. (2018) and Bick et al. (2022b) claim that the relation between the hours worked on average per worker and the GDP per capita corresponds to an inverted U curve. The average number of hours worked per worker first rises with GDP per capita and then decreases 1 Duernecker and Herrendorf's (2018) main goal is to analyze substitution between home and market production. ...

Structural Change in Labor Supply and Cross-Country Differences in Hours Worked
  • Citing Article
  • January 2021

SSRN Electronic Journal

... According to an accepted procedure, human activity per day is divided into production time (sign W) and consumption time (sign L), e.g., [34]. In addition, time spent on personal care activities (sign P) is included. ...

Why are Average Hours Worked Lower in Richer Countries?
  • Citing Article
  • January 2020

SSRN Electronic Journal