Sebastian is an Assistant Professor at the Department of Economics at the University of Mannheim.

His general focus is on questions of economic policy at the intersection of public, labor and macroeconomics.

His current research concentrates on education finance, esp. subsidies to higher education and the design of income-contingent student loans, optimal capital and labor income taxation and the effects of regional mobility on unemployed individuals.

He joined IZA as a Research Affiliate in 2010 and became a Research Fellow in 2014.



IZA Discussion Paper No. 11299

We study the impact of trade exposure in the job biographies, measured with daily accuracy, of 2.4 million workers in Germany. To profit from export opportunities, workers adjust through increased employer switching. Highly skilled workers benefit the most, consistent with an increase in skill demand. The incidence of import shocks...

IZA Discussion Paper No. 10469
forthcoming in: American Economic Review (P&P), 2017, 107(5)

The German economy exhibits rising service and declining manufacturing employment. But this decline is much sharper in import-competing than in export-oriented branches. We first document the individual-level job transitions behind those trends. They are not driven by manufacturing workers who smoothly switch to services. The observed shifts are entirely due...

IZA Discussion Paper No. 9171

The total social benefits of college education exceed the private benefits because the government receives a share of the monetary returns in the form of income taxes. We study the policy implications of this fiscal externality in an optimal dynamic tax framework. Using a variational approach we derive a formula...

IZA Discussion Paper No. 9123

We analyze optimal taxation of labor and capital income in a life-cycle framework with idiosyncratic income risk. We provide a novel decomposition of labor income tax formulas into a redistribution and an insurance component. The latter is independent of the social welfare function and determined by the degree of income...

IZA Discussion Paper No. 6685
revised version published in: Journal of the European Economic Association, 2014, 12 (6), 1643-1675, [Final version]

We analyze the effects of the unprecedented rise in trade between Germany and "the East" – China and Eastern Europe – in the period 1988–2008 on German local labor markets. Using detailed administrative data, we exploit the cross-regional variation in initial industry structures and use trade flows of other high-income...

IZA Discussion Paper No. 6056

We study optimal tax and educational policies in a dynamic private information economy, in which ex-ante heterogeneous individuals make an educational investment early in their life and face a stochastic wage distribution. We characterize labor and education wedges in this setting analytically and numerically, using a calibrated example. We present...

IZA Discussion Paper No. 3180
published in: Journal of Urban Economics, 2008, 64 (2), 326-339

In this paper we show that the recent model by Duranton (AER, 2007) performs remarkably well in replicating the city size distribution of West Germany, much better than the simple rank-size rule known as Zipf’s law. The main mechanism of this theoretical framework is the “churning” of industries across cities....