Hannah Illing

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Welcome!

I am an Assistant Professor (tenure-track) at the Mercator School of Management, University of Duisburg-Essen. I am also a research associate at the Institute for Employment Research (IAB), an IZA research fellow, and a research affiliate at RF Berlin.

My main field is labor economics. My research is motivated by understanding the sources of labor market disparities, often in combination with economic shocks.

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

Download my CV.

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.

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.

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’ earnings losses are about 23% higher 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 relying on lower-quality coworker networks during job search.

Working Papers

The Gender Gap in Entry Wages: Evidence from Exogenous Vacancies

Abstract

This paper studies the gender gap in entry wages. Using German administrative data from 1981 to 2016, we exploit sudden worker deaths to identify exogenous vacancies and compare female and male replacements hired into ex ante comparable vacancies. Female replacements earn 16 log points less at entry; the gap remains 10 log points after accounting for their wages in previous jobs. The gap is not explained by worker observables, outside options, amenities, hours, or coworker adjustments. It shrinks in tight labor markets and widens where firms have greater wage-setting power, pointing to entry wage setting as a central firm-side margin.

Work in Progress

The Labor Market Effects of Flood Events

The Impact of a Forced Migrant Outflow on Firms and Workers

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

Contact

Mercator School of Management
University of Duisburg-Essen
Lotharstraße 65
47057 Duisburg, Germany