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.

I am on the 2024/2025 academic job market.

Download my CV.

Job Market Paper

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. To study firms’ wage-setting behavior following exogenous vacancies, we analyze the wages of new hires after sudden worker deaths between 1981 and 2016. Using admin- istrative data from Germany, we apply a novel technique to identify external replacement workers, and we use machine learning to compare replacements hired for comparable positions by similar firms. We find that female replacement workers’ starting wages are, on average, 10 log points lower than those of replacing men of the same productivity. Differences in labor supply, within-firm ad- justments, or outside options do not explain this gap; instead, we attribute it to gender differences in bargaining. We conclude that a significant portion of the gender wage gap emerges within firms at the hiring stage.

Publications

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.

Working Papers

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.

Crossing Borders: Labor Market Effects of European Integration

Abstract

This paper studies the labor market effects of out- and in-migration in the context of cross-border commuting. It investigates an EU policy reform that granted Czech citizens full access to the German labor market, resulting in a Czech commuter outflow across the border to Germany. Exploiting the fact that the reform specifically impacted the Czech and German border regions, I use a matched difference-in-differences design to estimate its effects on local labor markets in both countries. Using a novel dataset on Czech regions, I show that municipalities in the Czech border region experienced a decrease in unemployment rates due to the worker outflow, and a corresponding increase in vacancies. For German border municipalities, I find evidence for slower employment growth (long-term) and slower wage growth (short-term), but no displacement effects for incumbent native workers.

Work in Progress

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

Abstract

With global warming, natural disasters are expected to become more widespread, with effects that are not yet fully understood. This study explores how three major floods in Germany—occurring in 2002, 2013, and 2021—impacted workers' mobility, employment, and wages. Leveraging detailed geo-coded data on flood events combined with social-security labor market records, we track individuals whose homes or workplaces were affected by a flood. Preliminary findings reveal three key results: (i) geographic and occupational mobility among affected individuals increased, (ii) their probability of employment increased, and (iii) their wages improved, potentially driven by reconstruction subsidies and spillover benefits.

The Impact of a Forced Migrant Outflow on Firms and Workers

Cross-border Careers

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