Press Releases of DIW Berlin http://www.diw.de/en/diw_01.c.100319.en/press/press_releases/press_releases.html Press Releases en http://diw.de/sixcms/media.php/37/diw_logo_farbe_mini.jpg DIW Berlin http://diw.de/ Federal state comparison of renewable energy sources: Baden-Württemberg is the new leader, beating out Mecklenburg Western Pomerania and Bavaria for the top spot http://www.diw.de/sixcms/detail.php?id=diw_01.c.569458.en Baden-Württemberg, Mecklenburg Western Pomerania, and Bavaria are the leading federal states in the field of renewable energy. That is the result from a comparison of the federal states which was compiled by the German Institute for Economic Research (DIW Berlin) and the Center for Solar Energy and Hydrogen Research Baden-Württemberg (Zentrum für Sonnenenergie- und Wasserstoff-Forschung Baden Württemberg, ZSW) on behalf of and in cooperation with the Renewable Energies Agency (Agentur für Erneuerbare Energien, AEE) for the fifth time. Using 59 indicators, the analysis assesses the federal states’ political efforts and achievements in using renewable energy sources as well as the related economic and technological changes in detail. Hesse, Berlin, and the Saarland were ranked the lowest.


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Thu, 16 Nov 2017 02:30:00 +0200 http://www.diw.de/sixcms/detail.php?id=diw_01.c.569458.en
Alumnus of the DIW Graduate Center awarded tenured professorship at Cornell University http://www.diw.de/sixcms/detail.php?id=diw_01.c.569265.en Nicolas R. Ziebarth (35), a student of the DIW Graduate Center’s first class, was promoted to “Associate Professor with indefinite tenure” in the Department for Policy Analysis and Management at Cornell University in Ithaca, New York (USA). Ziebarth’s area of research is applied health and labor economics.


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Mon, 13 Nov 2017 03:55:00 +0200 http://www.diw.de/sixcms/detail.php?id=diw_01.c.569265.en
Why are fewer women working in STEM fields? Girls underestimate their math abilities in school http://www.diw.de/sixcms/detail.php?id=diw_01.c.568725.en Boys consider themselves to be more gifted in mathematics than their grades indicate, whereas girls think their language skills are stronger. Differences in students’ self-evaluation of their skills are evident by the fifth grade and remain present throughout higher grades

Boys think higher of their math abilities in school than girls do – to an extent that is not justified by their actual grades. Research by the German Institute for Economic Research (DIW Berlin) shows that by the fifth grade, male and female students’ respective self-assessments of their math skills deviate from each other significantly. This difference remains present to a large extent up to and throughout the twelfth grade. These findings are the results of a study by Felix Weinhardt, a research associate in the Department of Education and Family at DIW Berlin, who evaluated data from the National Educational Panel Study (NEPS), which is representative for German students.


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Wed, 08 Nov 2017 10:00:00 +0200 http://www.diw.de/sixcms/detail.php?id=diw_01.c.568725.en
Abolishing the final withholding tax leads to tax revenue losses and barely burdens high-income groups http://www.diw.de/sixcms/detail.php?id=diw_01.c.568703.en Small revenue and distribution effects – Overall, slight tax revenue losses due to a period of low interest rates – Raising the final withholding tax rate to over 25 percent would result in moderate additional revenue

Abolishing the final flat-rate 25 percent withholding tax on unearned income makes sense neither from a fiscal nor a distribution point of view as long as interest rates are so low. If capital income were to be reintegrated into the income tax rate, slight tax revenue losses of 73 million euros would be expected, when taxing 60 percent of dividends and capital gains (partial-income rule) and fully deducting income-related expenses. This is the conclusion of a recent study by the German Institute for Economic Research (DIW Berlin). “Abolishing the withholding tax doesn’t do much in terms of fairness if you understand ‘fair’ to mean higher taxes on high capital income,” says DIW tax expert Stefan Bach. High-income groups would barely be burdened by the abolishment of the withholding tax while medium and low-income groups would experience marginal reductions in dividends. In addition, the amount of administrative burdens in the taxation procedure would increase. By contrast, increasing the withholding tax would lead to moderate additional tax revenues and have a progressive impact, but could worsen investment conditions in Germany.


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Wed, 08 Nov 2017 09:00:00 +0200 http://www.diw.de/sixcms/detail.php?id=diw_01.c.568703.en
Youth in Europe have major labor market problems despite lower unemployment http://www.diw.de/sixcms/detail.php?id=diw_01.c.568108.en The youth unemployment is still much higher than the unemployment of those aged 25 years and older – Decrease in unemployment primarily due to a drop in the number of young people and the greater number remaining in education – Political measures against youth unemployment prove ineffective

Although the youth unemployment rate in the EU has plummeted in recent years, it is still difficult for teens and young adults to find employment. For example, the unemployment rate in the 15-24 age group is still 2.5 times as high as that of person aged 25 years or more. The decrease in unemployment is primarily caused by the demographic shift and a lower participation in the labor market due to changed education behavior. Political measures for countering youth unemployment, such as the EU Youth Guarantee, do not have recognizable effects. These are the main findings of a current study by the German Institute for Economic Research (DIW Berlin). Newly created employment opportunities for young people are almost exclusively fixed-term jobs. The share of part-time jobs has also increased. Due to their more practical training, young people in Central Europe have fewer problems finding employment than persons 25 years and over, unlike the situation in other parts of Europe – particularly in the south.


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Thu, 02 Nov 2017 04:07:00 +0200 http://www.diw.de/sixcms/detail.php?id=diw_01.c.568108.en
DIW Economic Barometer October 2017: the German economy’s golden autumn http://www.diw.de/sixcms/detail.php?id=diw_01.c.568035.en The German economy’s strong upswing continues. At 112 points, the Economic Barometer published by the German Institute for Economic Research (DIW Berlin) continues to signal GDP growth that is well above average: 0.7 percent in the third quarter and 0.9 percent in the fourth. “The German economy is heading toward 2018 at full speed,” said Ferdinand Fichtner, head of forecasting at DIW.


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Wed, 01 Nov 2017 10:29:00 +0200 http://www.diw.de/sixcms/detail.php?id=diw_01.c.568035.en
Joint Economic Forecast Autumn 2017: Upturn Remains Robust - Amid Mounting Tensions http://www.diw.de/sixcms/detail.php?id=diw_01.c.565469.en Press release of the project group "Gemeinschaftsdiagnose": German Institute for Economic Research (DIW Berlin), Halle Institute for Economic Research (IWH), ifo Institute, Kiel Institute for the World Economy (IfW), RWI - Leibniz Institute for Economic Research


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Thu, 28 Sep 2017 11:00:00 +0200 http://www.diw.de/sixcms/detail.php?id=diw_01.c.565469.en
Joint Economic Forecast Spring 2017: Upturn in Germany strengthens in spite of global economic risks http://www.diw.de/sixcms/detail.php?id=diw_01.c.556104.en Press release of the project group "Gemeinschaftsdiagnose": German Institute for Economic Research (DIW Berlin), Halle Institute for Economic Research (IWH), ifo Institute, Kiel Institute for the World Economy (IfW), RWI - Leibniz Institute for Economic Research


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Wed, 12 Apr 2017 11:00:00 +0200 http://www.diw.de/sixcms/detail.php?id=diw_01.c.556104.en
Chinese investment strategy in Europe differs according to region http://www.diw.de/sixcms/detail.php?id=diw_01.c.555768.en Technology transfer primary motive behind Chinese OFDI in Western Europe; access to EU internal market motivates OFDI in Central and Eastern Europe; factors influencing investment decisions differ based on type of investment

China’s investment strategy in the EU differs depending on the target country. With investment in Western Europe, the main motivation is gaining access to advanced technologies. There, a majority of Chinese capital is invested in M&A – specifically in the acquisition of hidden champions, world leaders in their respective market segments. Investment in Central and Eastern Europe, on the other hand, is more oriented toward new ventures; such investment is more about facilitating Chinese access to the EU's internal market.

These are the findings of a new study conducted by the German Institute for Economic Research (DIW Berlin), which also investigates the precise determinants of the two different types of investment.

Accordingly, the main factors that determine Chinese investment activities are the market size in the target country, and the intensity of bilateral trade between that country and China. When it comes to new ventures, unit labor costs, the size of the industrial sector, and the regulatory density have a negative impact on Chinese investment.

“Sound institutions, which are indicative of heavily regulated, highly competitive markets, tend to deter Chinese investors,” explains study author Christian Dreger, Research Director in the Department of International Economics at DIW Berlin. “Here, Chinese investors may have a different sense of risk from their Western counterparts, who are less reluctant to set up new ventures in highly competitive target regions.” In other respects, however, the determinants of Chinese direct investment differ very little from conventional patterns.


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Wed, 05 Apr 2017 10:00:00 +0200 http://www.diw.de/sixcms/detail.php?id=diw_01.c.555768.en
World Happiness Day: SOEP data show that life satisfaction of Eastern Germans is catching up http://www.diw.de/sixcms/detail.php?id=diw_01.c.554636.en People across Germany are happier today than at any other point since German reunification

According to a new analysis of data from the nationally representative, long-term Socio-Economic Panel (SOEP) study, people in both West and East Germany have been happier on average since 2015 than at any other point since German reunification (Figure 1). The substantial increase in life satisfaction from 1990 levels is primarily the result of the catch-up process in East Germany. Yet even 25 years after reunification, the level of life satisfaction in East Germany is still substantially below that in West Germany (Figure 2).

“Although it’s sobering that there is still a difference between East and West, the gap has diminished significantly over the years and is lower now than ever before,” says SOEP Director Jürgen Schupp, who conducted the analysis.


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Wed, 22 Mar 2017 09:00:00 +0200 http://www.diw.de/sixcms/detail.php?id=diw_01.c.554636.en
The austerity policy was counterproductive in Spain, Portugal, and Italy http://www.diw.de/sixcms/detail.php?id=diw_01.c.553175.en DIW study showed: To some extent, drastic savings measures neutralized the effects of structural reform. The countries affected relapsed into recession without having improved their financial picture – a balanced policy mixture would have been better.

The austerity measures and tax increases implemented from 2010 onwards did not reduce sovereign debt in Spain, Portugal and Italy as anticipated. Instead, they were among the forces that drove the three economies back into recession. Contrary to popular opinion, the failure of the consolidation strategy is not the result of a lack of the will to reform on the part of the relevant governments. Actually, the dramatic spending cuts and tax increases prevented the reforms that were implemented from unfolding their full effect. That is the result of a new study by DIW Berlin that examined the effects of the austerity policy in Spain, Portugal, and Italy for the period 2010 to 2014.

According to the study, the enormous private household debt in the three countries played a key role in the policy’s negative impact on growth. In Spain, for example, private households had to pay more to service their debt as the result of stricter financing conditions.  As a result, private household debt fell from 87 percent of GDP in 2007 to 60 percent in 2014. “Private households used a large proportion of their disposable income to pay off outstanding debt and had less money available for consumption,” said author Mathias Klein. “Then the government raised taxes and cut spending, which only amplified the effect. The sharp drop in private consumption reduced GDP and the already high unemployment level rose again.”


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Wed, 22 Feb 2017 09:30:00 +0200 http://www.diw.de/sixcms/detail.php?id=diw_01.c.553175.en
Despite political uncertainty, German economy continues to expand – even as employment growth slows down http://www.diw.de/sixcms/detail.php?id=diw_01.c.548951.en German economy’s growth rate will drop next year, primarily due to calendar effects – labor market expansion losing some momentum – numerous risks for the global economy

According to a new forecast by the German Institute for Economic Research (DIW Berlin), the German economy’s upward trend will continue through 2017 and 2018 – even though the current global economy is characterized by substantial risks. German GDP growth is expected to amount to 1.2 percent in 2017, a figure that is lower than this year’s 1.8 percent primarily because there will be fewer workdays next year. DIW Berlin’s autumn forecast predicted a growth rate of 1.0 percent for 2017, which has now been adjusted upward. The growth rate should be higher again in 2018, amounting to 1.6 percent.

 

Yet the significant risks to economic development –government elections in several European countries, tough negotiations related to the Brexit, and structural problems in the Italian banking sector, among others – should not be ignored. Germany’s substantial 2016 budget surpluses will decrease significantly in 2017 and completely disappear by 2018, at which point slight deficits may also materialize.

Private consumption, which remains the German economy’s primary growth driver, is expected to decline over the forecast period. The very strong employment growth of the past few years has been losing momentum, and this alone has been dampening income development. Furthermore, higher energy prices will lead to a rise in inflation, which in turn will have a negative effect on purchasing power. The projected inflation rates for 2017 and 2018 are 1.4 and 1.5, respectively. In 2017 unemployment levels will remain low (5.9 percent). Exports are developing favorably, but demand from the EU is likely to suffer in the coming months as a result of the Brexit decision as well as the political uncertainty that is currently plaguing several countries.


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Tue, 20 Dec 2016 09:51:00 +0200 http://www.diw.de/sixcms/detail.php?id=diw_01.c.548951.en
Lack of equal rights regarding financial decisions contributes to women’s lower level of financial literacy http://www.diw.de/sixcms/detail.php?id=diw_01.c.547261.en DIW Berlin examined the causes for the gender gap in financial literacy in several countries – Cultural factors play a key role in addition to income, education, and experience – Better financial literacy would mean more financial security for women in retirement

In most countries of the world, women know less about financial matters than men. Socio-demographic factors such as income, age, education, and experience with finances partially explain the gender gap in financial literacy. Cultural aspects, including the role of women in society, are also key factors. These are the findings of a study by the German Institute for Economic Research (DIW Berlin).

The study focused on Germany, the US, and Thailand. Men in Germany and the US outperform women – even women with higher educational levels and female heads of household – on financial literacy tests. In Thailand on the contrary, women know at least as much about financial matters and money as men. “In Thai culture, women often have the financial responsibility in the household. On this point, equality between men and women is greater there than in Germany and the US ,” said Antonia Grohmann, the author of the study.


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Mon, 21 Nov 2016 01:30:00 +0200 http://www.diw.de/sixcms/detail.php?id=diw_01.c.547261.en
Private R&D not necessarily drawn to areas with high public R&D http://www.diw.de/sixcms/detail.php?id=diw_01.c.546874.en Germany’s research and development concentrated in urban areas – public research undergoing dynamic development

According to a new study conducted by the German Institute for Economic Research (DIW Berlin), spatial proximity to industrial production plays a greater role for Germany’s private research and development (R&D) than does proximity to publicly funded research institutions and institutes of higher education (IHE).

“Policy should promote transregional networking among research facilities, higher education institutes, and businesses,” recommends DIW economist Alexander Eickelpasch. Areas with lower levels of industrial activity should thus not only promote the transfer of knowledge within the region but also take advantage of public research conducted elsewhere in order to support the local economy. Furthermore, to make better use of knowledge potential at the local level, regional industry should be strengthened – for example, within the framework of industrial development policy.


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Tue, 15 Nov 2016 11:25:00 +0200 http://www.diw.de/sixcms/detail.php?id=diw_01.c.546874.en
People in Germany still more than willing to show solidarity with EU countries in crisis http://www.diw.de/sixcms/detail.php?id=diw_01.c.543322.en A study by DIW Berlin shows that almost half the adult population of Germany believes helping EU countries in crisis is the right course of action—around 30 percent oppose it—cuts in welfare spending in the crisis countries are also criticized

Contrary to the image often presented, many people living in Germany support German aid for EU countries in financial crisis. In the second half of 2015, 48 percent of adults considered it to be the right course of action for Germany to help other EU member countries. Around 30 percent opposed this and 20 percent were indifferent. These are the findings of a joint study by the German Institute for Economic Research (DIW Berlin) and Leipzig University, based on data from the Socio-Economic Panel (SOEP). Compared with earlier surveys by Eurobarometer, popular support has not diminished since 2010. Authors Holger Lengfeld, Professor of Sociology at Leipzig University, and Martin Kroh, Deputy Head of SOEP, said that, “Although the financial crisis escalated considerably in some southern European countries during this period and in some years, notably during the Greek crisis, there were a whole host of negative headlines, people are still very willing to show solidarity.”


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Tue, 04 Oct 2016 01:43:00 +0200 http://www.diw.de/sixcms/detail.php?id=diw_01.c.543322.en
Joint economic forecast: German economy on track – economic policy needs to be realigned http://www.diw.de/sixcms/detail.php?id=diw_01.c.543478.en Thanks to a stable job market and solid consumption, the German economy is experiencing a moderate upswing. The GDP is expected to increase by 1.9 percent this year, 1.4 percent in 2017, and 1.6 percent in 2018, according to the Gemeinschaftsdiagnose (GD, joint economic forecast) that was prepared by five of Europe’s leading economic research institutes on behalf of the Federal Government. The most recent GD, which was released in April, predicted a GDP growth rate of 1.6 percent for 2016 and 1.5 percent for 2017.


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Thu, 29 Sep 2016 11:00:00 +0200 http://www.diw.de/sixcms/detail.php?id=diw_01.c.543478.en
Likelihood of holding a senior management position: gender gap largest in financial sector http://www.diw.de/sixcms/detail.php?id=diw_01.c.542360.en Availability for full-time work still a prerequisite for climbing the career ladder in all sectors

Overall, women in Germany have considerably lower odds of holding a senior management position than men, particularly in the financial sector. These are the findings of a study conducted by the German Institute for Economic Research (DIW Berlin) based on data from the Socio-Economic Panel (SOEP) study for 2001 to 2014. Although the financial sector has a comparatively high number of senior management positions, this is a structure that primarily benefits men. According to DIW Berlin’s Research Director Gender Studies, Elke Holst, one of the biggest career barriers faced by women is their tendency to more frequently work part-time. “Companies still prefer management positions to be full-time,” says Holst. “If we don’t want flexible working time models to end up being career killers in the rush hour of life, a change in mentality is required.”


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Fri, 23 Sep 2016 11:14:00 +0200 http://www.diw.de/sixcms/detail.php?id=diw_01.c.542360.en
German economy temporarily losing momentum http://www.diw.de/sixcms/detail.php?id=diw_01.c.542123.en DIW Berlin short-term economic forecast: German GDP will increase by 1.9 percent in 2016, 1.0 percent in 2017, and 1.6 percent in 2018 – Brexit decision temporarily hindering growth – unemployment continues to fall, but wage increases are also slowing down – public budgets will end all three years with surpluses

According to the latest economic forecast from the German Institute for Economic Research (DIW Berlin), a temporary slow-down is expected for the German economy. Although this year’s GDP is expected to increase by 1.9 percent due to a surprisingly strong start into the year the consequences of June’s Brexit decision are likely to be felt during the winter months, thus dampening Germany’s economic growth. This also contributes to a lower growth rate for 2017: estimates put this figure now at 1.0 percent. As well, 2017 will have three fewer working days than 2016 – and this alone will dampen growth by four-tenths of a percentage point.


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Tue, 13 Sep 2016 03:00:00 +0200 http://www.diw.de/sixcms/detail.php?id=diw_01.c.542123.en
Study on past refugees helps develop possible solutions for future integration http://www.diw.de/sixcms/detail.php?id=diw_01.c.541848.en Social scientists and economists at DIW Berlin and Humboldt University Berlin researched the integration of refugees who arrived in Germany between 1990 and 2010 – survey data indicate difficult starting conditions with employment and language skills compared to other migrants, but refugees were able to catch up over time

How can we help refugees to successfully integrate into Germany society – especially those migrants who’ve arrived as part of the major influx from the past two years? In order to answer this question, a group of social scientists and economists at the German Institute for Economic Research (DIW Berlin) and Humboldt University Berlin took a look into the recent past. Their key finding: after initial difficulties, refugees who came to Germany between the years 1990 and 2010 were eventually able to catch up to other migrants in terms of employment and language skills.


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Wed, 07 Sep 2016 12:56:00 +0200 http://www.diw.de/sixcms/detail.php?id=diw_01.c.541848.en
The Brexit vote impact: What does the uncertainty mean for the economy? http://www.diw.de/sixcms/detail.php?id=diw_01.c.540950.en DIW Berlin study shows that Brexit vote-related uncertainty will do considerable damage to the European and German economies in a way that will be noticeable even two years from now – since the German economy is primarily affected by sinking business investment, policy should be more oriented toward promoting investment

Uncertainty plays a major role in the economy overall – but what are the consequences when financial markets, businesses, and consumers are affected all at once, as in the case of the recent Brexit vote? The German Institute for Economic Research (DIW Berlin) sought to answer this question by isolating the effects of the Brexit vote-related uncertainty shock using a counterfactual analysis. (The authors emphasize that the study should not be considered an economic forecast.) The result: even after several months, the impact of the unexpected Brexit vote outcome will still be noticeable in GDP, unemployment, and the consumer price index. According to the model calculation, euro area GDP will be roughly 0.2 percent lower eight months from now. Due to its openness and dependence on trade, the German economy will be even more strongly affected: in this case, GDP will be 0.4 percent lower. The consensus among the experts: “Even after two years, GDP will still be below the level that would have been in a no-shock scenario.” 


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Wed, 10 Aug 2016 10:00:00 +0200 http://www.diw.de/sixcms/detail.php?id=diw_01.c.540950.en