Accessing German Social Security Data at Princeton University Princeton University March 26, 2015 Joerg Heining

FDZ: Research Data Center of the German Federal Employment Agency (BA) Located at the Institute for Employment Research (IAB) in Nuremberg, Germany Established in 2004 Facilitates access to micro data of BA and IAB for purposes of academic research Since 2011: Remote access centers in Germany and the US 2 FDZ of BA at IAB

3 Data Available at FDZ Micro labor market data on individuals/households and establishments Surveys Data available at the FDZ Administrative Data Social Security Notifications Process- generated data of the BA External/ Open Data

4 Notification Procedure to the Social Security Institutions Employers are required by law to notify the social security institutions on: ‐ Every employee and marginal worker covered by the social security system ‐ No information on civil servants, freelancers or self-employed ‐ At the beginning or end of employment, employment interruption, change of health insurance ‐ At least once a year ‐ Social security number and establishment number Purpose of data collection: ‐ Calculation of pension payments, unemployment benefits, and other benefits ‐ Statistical purposes

5 Notification Procedure to the Social Security Institutions  Social Security Number  Establishment Number  Last Name  First Name  Address  Reason for Notification  Times of Employment (on a daily basis)  Nationality  School Education  Vocational Training  Type of Employment  Wages  Occupation (since 2011: new classification)  Industry code

6 Process-Generated Data of BA Data from operative processes of BA: ‐ Information on earnings replacement/unemployment benefit receipt ‐ Participation in labor market programs ‐ Registered job search Periods (daily exact information) and amounts on the individual level Social security number or BA customer ID, and several other variables

7 The Integrated Employment Biographies (IEB) Database IAB merges social security records and BA data  (complete) individual employment biographies Integrated Employment Biographies (IEB) database Employment history covered by social security system (since 1975) Unemployment benefit receipt (since 1975, SGB II since 2005) Registered job search (since 2000) Participation in labor market programs (since 2000) Current version: Information on individuals apprenticeship training retirement/entry to the pension system

8 Data Available at FDZ - Overview External/Open Data

9 Sample of Integrated Labor Market Biographies (SIAB) Approximately 2% random sample drawn from the IEB database May be linked to the Establishment History Panel data (BHP)

10 Sample of Integrated Labor Market Biographies (SIAB)

11 Establishment History Panel (BHP) Cross sectional dataset on all establishments in Germany with ‐ at least one employee liable to social security (until 1998) ‐ since 1999 also with at least one marginal worker Aggregations of the individual admin data by establishment ids Current version % random sample or random sample stratified by 8 establishment sizes In the samples: to 1.3 million establishments per year Employment structure of the establishment broken down by ‐ Type of employment, educational attainment, age, occupation, nationality, wage, etc. ‐ In- and out-flows, indicator on establishment entries and exits

12 Linked-Employer-Employee Data (LIAB) Worker information from the IEB database are linked to the IAB Establishment Panel data IAB Establishment Panel: ‐ Annual establishment survey ‐ West-Germany since 1993, East-Germany 1996 Two data models of the LIAB data are available: ‐ Cross-sectional model: all observations from the IAB Establishment Panel combined with administrative worker data from IEB database on June 30 (linked establishments: 4,188 – 14,981 per year, workers: 1,629,542 – 2,584,520 per year) ‐ Longitudinal model: selection of establishments from the IAB Establishment Panel combined with worker biographies from the IEB database (linked establishments: 2,702 – 11,117 per year, workers: 1,090,728 – 1,536,665 per year)

13 LIAB Longitudinal Model (LIAB LM9310)

14 Biographical data of selected insurance agencies in Germany (BASiD) 1% sample of the population of the German Pension insurance related to the sample of insured persons and their insurance accounts 2007 (Versichertenkontenstichprobe - VSKT) ‐ Employment liable to social security (in the data since 1951) ‐ Marginal employment (in the data since 1999) ‐ Self-employment with voluntary pension insurance ‐ Receipt of unemployment benefits according to the German Social Code Book III (in the data since 1975) or German Social Code Book II (in the data since 2005) Information from the IEB database are added: ‐ times of job search registered by BA (in the data since 2000) ‐ (planned) participation in labor market programs

15 Linked Personel Panel (LPP) Joint project with University of Cologne and Center for European Economic Research (ZEW), funded by Federal Ministry of Labor and Social Affairs (BMAS) Survey on HR work, corporate culture and management instruments in German establishments ‐ Which HR management instruments are used by establishments? ‐ Is there an impact of certain HR management strategies on firm performance? ‐ Is there an impact of certain HR management strategies on employees’ attitudes, satisfaction, health status, commitment etc.? First wave 2012/2013 of the LPP data contains of ‐ Survey of 1,219 establishments from IAB Establishment Panel survey in 2011 and 2012 ‐ Survey of more than 7,500 employees in the selected establishments LPP will be linked to the IEB database

16 IAB-SOEP Migration Sample (IAB-SOEP MIG) Household survey conducted by IAB and German Socio-Economic Panel (SOEP) at DIW Berlin First wave 2013: direct interviews with 4964 persons in 2723 households Individual and household questionnaire Survey addresses various aspects of immigration including: ‐ Migration history ‐ Education history ‐ Employment history ‐ Labor market background Combination of IAB-SOEP MIG with IEB data will be published in the near future

17 New Data Developments (selection) Patent data Geocoded data Commercial business data (Bureau van Dijk, BvD): Combined BvD-IEB data

18 Patent Data Data from the German Patent and Trade Mark Office (DPMA) linked to data from the IEB database ‐ Name and address of inventors for all registered patents in 2002 ‐ 30,000 inventors are linked to admin data ‐ Dorner/Bender/Harhoff/Hoisl: Patterns and Determinants of Inventor Mobility – Evidence from the Employment Biographies of Inventors in Germany German inventors from ‐ Record linkage more or less completed Patents from the former East Germany ‐ Around 75,000 inventors from the former GDR can be found afterwards in the IEB database

19 Geocoded Data  Geocoded address material (GAB) from Federal Agency for Cartography and Geodesy  Combined with employment spells from the IEB database for

20 Geocoded Data Low wage = Wage is below 2/3 of the average wage in Berlin. Low wage = around 53 Euro per day.

21 Combined BvD – IEB Data Bureau van Dijk (BvD): company and individual information (sample period: ) Orbis database has two parts: companies and managers Content of BvD ‐ quarterly financial data for stock traded firms ‐ yearly financial data for all firms ‐ individual manager information ‐ additional information: industry sectors, global and domestic ultimate owners, legal form, insolvent/active/listed/delisted, etc. Record linkage for firms and establishments via name and legal form Record linkage for individual data via first and last name, birth date, address

22 Publications with FDZ Data ‐ American Economic Review ‐ The Quarterly Journal of Economics ‐ The Review of Economics and Statistics ‐ European Economic Review ‐ Journal of Business and Economic Statistics ‐ The Scandinavian Journal of Economics ‐ Journal of Labor Economics ‐ Journal of Urban Economics ‐ Labor Economics ‐ Journal of Population Economics ‐ and many more

23 Access Modes Off-Site AccessOn-Site Access Download (Scientific Use File) Remote ExecutionVisit to FDZ or Remote Access Centers Factually anonymized data Weakly anonymized data

24 Remote Access Centers of FDZ New center at Princeton University!!! Coming soon: UK Data Archive, Colchester UK and University of California Los Angeles

25 Easy, Quick and Cheap Access Easy ‐ Non-technical project proposal ‐ Approval by FDZ ‐ Use agreement with the institution of the researcher ‐ IRB approval from Princeton University Quick ‐ (Estimated) Time until user/institution receives agreement: ‐ 2 to 4 weeks Cheap ‐ Access to standard FDZ data is free of charge ‐ No lab fees ‐ No restrictions on hours/visits of on-site use facilities or runs of remote executions

26 Customized FDZ Data Regular FDZ data are a rich resource but may not always fit the requirements of the specific project Possibility for customized FDZ data products : ‐ Specifically shaped administrative data ‐ Administrative data combined with external data  German Record Linkage Center at FDZ ‐ Subject to charge

27 Other Services Provided by the FDZ Software available: Stata, R, SAS, MatLab Disclosure review service Bilingual documentation (German and English, including variable and value labels) Advisory service and assistance Permanent IAB staff member based in Ann Arbor

Research Data Center (FDZ) of the German Federal Employment Agency (BA) at the Institute for Employment Research (IAB) Regensburger Straße Nuremberg Germany +49-(0) (0) Joerg Heining +49-(0) Thank you!

29 Panel ‘Labor Market and Social Security’ (PASS) Annual household survey started in 2006/2007: Labor market and poverty situation in Germany Situation of recipients of benefits in accordance with the German Social Code Book II (recipients of Unemployment Benefit II (“Hartz IV”)) Two random samples from two partial populations: ‐ Persons and households in receipt of Unemployment Benefit II ‐ All persons and households registered as residents of Germany 7 waves are available Combined PASS-IEB data (Pass-ADIAB) became available recently

30 Working and Learning in a Changing World (ALWA) Survey which contains information about more than life histories Allows longitudinal analysis of ‐ Schooling and training decisions ‐ Labor market re-entries and labor market behavior ‐ Processes of family formation ‐ Regional mobility Competence tests (for half of the individuals) Combined data: ALWA – administrative data (ALWA-ADIAB)

LPP- Sampling 31 IAB-Establishment Panel data since 1993 LPP-Establishment Survey 2012/13 1,219 Establishments LPP-Employee Survey 2012/2013 7,508 Employees Linked Personnel Panel (LPP) Establishme nts in the private sector 2011 Employees from 861 Betrieben

32 Establishment History Panel (BHP)

33 Geocoded Data

34 Panel “WeLL” – Employee Survey for the Project “Further Training as a Part of Lifelong Learning” Survey about further vocational training from employers and employees Four waves: 2007, 2008, 2009 and 2010 Specifically designed for analyzing in-firm further training activities Not representative for German establishments and employees Further training activities, socio-demographic characteristics and information about income, household, job satisfaction and expectations regarding the future, some establishment information WeLL-ADIAB: Combined WeLL-IEB data

Data from the Operative Systems of BA 35 Prior to 2005 Unemployment Benefits (ALG) Social Assistance Expiration Date of ALG Benefit Recipient History File (LeH) Unemployment Benefits (ALH)

Data from the Operative Systems of BA 36 After 2005 Benefit Recipient History File (LeH) Unemployment Benefits I (ALG) Unemployment Benefits II (ALG II) Expiration Date of ALG The Unemployment Benefit II Recipient Histories Files (LHG/XLHG)

Access to a Unique Data Resource for Cutting Edge Research 37