Thomas von Stetten (Copyright)  Hochhaus Wolkenkratzer Hochhäuser
Roundup, 07 Dec 2017

Global capital flows have strongly increased from the 1980s until the outbreak of the financial crisis. As a result of this development, Germany's foreign investment has risen to around 250 percent of gross domestic product while foreign investments in Germany have increased to about 200 percent of ... more (Copyright)  Mindestlohn Geld Scheine
Press Release, 06 Dec 2017

The introduction of the minimum wage in Germany led to significant increases in wages –– However, around seven percent of eligible workers earn less than minimum wage, with the marginally employed and employees at small businesses being particularly affected –– When one also ... more

Lupo  / (Copyright)  EZB Europaeische Zentralbank
Press Release, 06 Dec 2017

The following study from DIW Berlin examines the effects of different exit scenarios from the European Central bank’s bond purchase program on the European economy – exiting early would especially depress the inflation rate What if the ECB were to reduce its bond purchase program by ... more

DIW Berlin/Schuh (Copyright)
Press Release, 01 Dec 2017

On January 1, 2018, Liebig will become director of the Socio-Economic Panel (SOEP) and a member of the institute’s Executive Board Stefan Liebig, a professor of sociology at Bielefeld University, will succeed Gert G. Wagner as a member of the German Institute for Economic Research’s ... more

Juska (Copyright)  Mann Männlich Männer
Press Release, 29 Nov 2017

Two DIW studies on the partial retirement scheme and raising the normal retirement age: simulations show positive employment effects and fiscal implications A normal retirement age that increases relative to the rise in life expectancy after 2030 could help keep the funding of the statutory ... more

List of news
by Patrick Burauel, Marco Caliendo, Alexandra Fedorets, Markus M. Grabka, Carsten Schröder, Jürgen Schupp, Linda Wittbrodt, in DIW Economic Bulletin

Calculations based on data from the Socio-Economic Panel (SOEP) show that after the introduction of a statutory minimum wage in Germany in January 2015, the wage growth of eligible employees with low wages accelerated significantly. Before the reform, the nominal growth in contractual hourly wages in the lowest decile, the bottom tenth of the pay distribution, was less than two percent in the long-term two-year average, while from 2014 to 2016 it was around 15 percent. Nevertheless, in the first half of 2016, around 1.8 million employees who were eligible for the minimum wage of 8.50 euros gross per hour still earned contractual hourly wages below this level. In 2015, the count was approximately 2.1 million workers, and in the year before the introduction of the minimum wage, almost 2.8 million. The figures for 2015 and 2016 reported here are thus higher than corresponding figures from company surveys. Despite the disproportionate increase in wages in the lowest wage decile, many workers are still not earning the minimum wage. The objectives of the German Minimum Wage Act (Mindestlohngesetz) are often not being met, especially among the marginally employed. Instruments for better enforcement of the Minimum Wage Act include more frequent inspections, stricter sanctioning, more effective grievance procedures for workers, and stricter requirements for the documentation systems (especially timekeeping).

by Olga Chiappinelli, Vera Zipperer, in DIW Economic Bulletin

Public authorities spend large proportions of their GDP on goods and services and are therefore responsible for a significant share of embedded emissions. Given this large impact, governments have the responsibility of decarbonizing their purchases, as well as the potential to influence markets towards sustainability. So-called ‘Green Public Procurement’ (GPP) consists in the use of environmental criteria in the procurement process. In Germany, Europe’s biggest economy, public purchases account for 15 percent of annual GDP. However, despite a rising trend, the use of GPP in public procurement contracts remains marginal. The main barriers to broader implementation is the perception that including environmental criteria leads to higher procurement costs. Further, administrative capacity faces constraints to acquire legal and technical expertise about GPP. A clear political mandate for financing the incremental costs incurred from the environmental impact of procured goods and services, as well as specific training programs for procurement officials can encourage an increased adoption of GPP in the future.

by Marius Clemens, Stefan Gebauer, Malte Rieth, in DIW Economic Bulletin

The European Central Bank is planning a gradual reduction of government bond purchases under the asset purchase program it initiated in 2015. The present study by the German Institute for Economic Research analyzes the potential macroeconomic implications of different exit strategies. The authors examined the potential effects of a reduction in net purchase volume, an early exit, and a faster exit from the program on output and inflation in the euro area. Model simulations showed that economic growth and inflation rates would decrease in all three scenarios. However, the effects of the scenario with reduced asset purchases are less severe than those of an exit from the program that is earlier or faster than expected. In particular, an early exit from the program should significantly affect inflation rates, an effect that the European Central Bank should factor into its decision-making process.

List of Publications

Latest Tweets of DIW Berlin:

On the effects of deadlines – and their implications for policy design | BCCP Fellow on the effectiveness of |
“Discussions about current account balances should be conducted by taking into account the high levels of international positions and the associated valuation changes”:
expansive monetary policy: early exit from the European Central bank’s bond purchase program could reduce GDP growth and in the
In 2016, 1.8 million people who were eligible for the were actually earning less than €8.50 gross per hour (the German minimum at the time) based on their contractual work hours – shows a new study by DIW Berlin & :
Stefan Liebig, a professor of sociology at , will succeed Gert G. Wagner as a member of the German Institute for Economic Research’s Executive Board on January 1, 2018. Liebig will also take over as director of the Socio-Economic Panel (SOEP):
Two DIW studies on the partial scheme and raising the normal in Germany: simulations show positive employment effects and fiscal implications
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