Adrian Lerche

I am a senior researcher at the Institute for Employment Research (IAB) in Nuremberg. I received my PhD from Universitat Pompeu Fabra (UPF) in Barcelona.

Labor Economics, Public Economics, Applied Microeconomics

Phone: +49 (911) 179 9213
Regensburger Straße 104
90478 Nuremberg / Germany

CV (pdf)


Occupational Recognition and Immigrant Labor Market Outcomes
with Herbert Brücker, Albrecht Glitz, Agnese Romiti
January 2020
IZA Discussion Paper No. 12030 (Dec 2018), CReAM Discussion Paper No. 18/18 (Dec 2018)
R&R at the Journal of Labor Economics

In this paper, we analyze how the formal recognition of immigrants’ foreign qualifications affects their subsequent labor market outcomes. The empirical analysis is based on a novel German data set that links respondents’ survey information to their administrative records, allowing us to observe immigrants at monthly intervals before, during and after their application for occupational recognition. Our findings show substantial employment and wage gains from occupational recognition. After three years, the full recognition of immigrants’ foreign qualifications increases their employment rates by 24.5 percentage points and raises their hourly wages by 19.8 percent relative to immigrants without recognition. We show that the increase in employment is largely driven by a higher propensity to work in regulated occupations. Relating our findings to the economic assimilation of immigrants in Germany, we further document that occupational recognition leads to substantially faster convergence of immigrants’ earnings to those of their native counterparts.

Investment Tax Credits and the Response of Firms
December 2018
Best Paper Award at Oxford Centre for Business Taxation Doctoral Conference 2019
IIPF Young Economists Award 2019

This paper studies the effects of investment tax credits on firms’ input choices by exploiting a sudden shift in the tax credit rate by firm size for manufacturing firms in Germany in 1999. I find that more generous tax credits lead to a significant increase in both investment and employment, with implied elasticities with respect to capital costs of 2.8 and 1.1, respectively. Local spillovers between firms generate an additional positive effect. The employment effect is due to the increased hiring of new employees rather than a decrease in separations, with direct flows out of unemployment constituting about half of the inflow of workers. A heterogeneity analysis reveals that firms with larger capital cost shares are more responsive to tax credits and that spillovers tend to be stronger for firms operating in the same industry. While there is little evidence that the average firm adjusts its skill mix or occupational structure, firms in industries with higher investment shares into information and communications technology (ICT) are more likely to shift towards highly educated labor and high-skilled occupations.


Helping High-School Students in Choosing their Career: Experimental Evidence from a Large-Scale School Policy
with Silke Anger, Sarah Bernhard, Hans Dietrich, Alexander Patzina, Malte Sandner, Carina Toussaint
AEA RCT Registry AEARCTR-0004587

Capital Adjustment Costs and the Elasticity of Substitution: Evidence from Tax Credits

Immigration and the Adjustment Behavior of Firms