Honor: AEJ Applied Economics publication and AEA “Chart of the Week” feature for MGSE alumnus Daniel Wissmann
Please join us in congratulating Daniel Wissmann, our MGSE alumnus for the publication of his main dissertation paper “Finally a Smoking Gun? Compensating Differentials and the Introduction of Smoking Bans” in the January 2022 issue of AEJ: Applied Economics, one of the highest-impact journals in the economics profession. He is especially honored by featuring the central graphic of his paper as “Chart of the Week” on the AEA website!
As the AEA points out “the theory of compensating differentials suggests that in a competitive labor market, a job with unpleasant working conditions must pay workers more than an otherwise comparable one. While the idea of compensating differentials goes back to Adam Smith, finding direct empirical evidence has proved challenging. [In his paper,] Daniel Wissmann helps to fill this gap by examining the staggered introduction of smoking bans in German restaurants and bars from 2007 to 2008.” He finds a robust 2.4 percent decline in the daily earnings of workers in bars and restaurants associated with the most comprehensive smoking ban. This effect is unlikely to be driven by a decline in hospitality revenues or hours worked but is consistent with a simple model of compensating differentials.
“We are proud of Daniel’s magnificent success”, says MGSE Placement Officer Prof. Davide Cantoni. “This is also a success for our International Graduate Program ‘Evidence-Based Economics (EBE).’ To my knowledge, this is the first time that research from our department is featured in the AEA ‘Chart of the Week.’ This is confirmation of the good work we have been doing over the past years in training economists in our Munich Graduate School of Economics.”
Daniel Wissmann graduated as an outstanding MGSE student in 2018. Currently he works as a policy advisor at the Federal Ministry for Economic Affairs and Climate Protection.