DIW Weekly Report

Ganzes Heft

The Gender Pay Gap Begins to Increase Sharply at Age of 30

The gender pay gap increases with age: While the average gross hourly wage gap between male and female 30-year-olds is nine percent, the gap triples to 28 percent by the age of 50. This stark increase is due to differences in employment behavior in the decades between the ages of 30 and 50. Beginning at age 30, women often switch to part-time work to be able to provide childcare, whereas men tend to ...

Ganzes Heft

Nitrate Pollution of Groundwater Long Exceeding Trigger Value: Fertilization Practices Require More Transparency and Oversight

For many years now, nitrate concentrations have exceeded the trigger value of 50 milligrams per liter at nearly one-fifth of the groundwater sampling sites in Germany. Apart from impairing the ecosystem by, for example, causing eutrophication of water bodies, nitrate-polluted drinking water also damages human health; it is suspected to cause cancer. Econometric calculations using current data confirm ...

Ganzes Heft

From Iran to Russia to Hong Kong: Geopolitical Risks Are Weighing on the German Economy

Over the past years, there has been an increase in global geopolitical risk, the most recent example being the intensifying conflict between the USA and Iran. Such geopolitical risks also affect the German economy. A geopolitical shock, defined as an unexpected increase in risk, has a significantly negative effect on the development of the German economy, and stock prices fall. By comparison, German ...

Ganzes Heft

More Women on Supervisory Boards: Increasing Indications that the Effect of the Gender Quota Extends to Executive Boards

The statutory gender quota for supervisory boards is effective: the proportion of women on supervisory boards has increased over the past years, especially in the companies subject to the quota. But is the quota creating trickle-down effects for executive boards? As the second part of the DIW Berlin Women Executives Barometer, this report analyzes whether a relationship between the growth of the proportion ...

Proportion of Women on Top-Decision Making Bodies of Large Companies Increasing, Except on Supervisory Boards in the Financial Sector

The share of women on executive boards of large companies in Germany has increased somewhat more strongly than in previous years. The top 200 companies reached the ten percent mark for the first time: women held 14 more board positions than in the previous year, 94 out of 907. Growth was also somewhat more dynamic on the executive boards of the largest listed companies and companies with government- ...

Boards of Major German Companies Are Gradually Changing: Editorial

Ganzes Heft

Financial Stability: New, Detailed Datasets Allow for Innovation of Stress Tests

The 2008-2010 crisis has shown that authorities were missing crucial information necessary to identify risks to the financial system in an accurate and timely manner. To be prepared for future crises, a range of legislation in Europe and beyond was passed. The scope and depth of information being reported from across the financial system, including previously disregarded segments, have thus significantly ...

Ganzes Heft

Construction Industry an Important Pillar of the Economy: Investment Assistance Taking Effect

The construction industry is increasingly becoming a key pillar of the business cycle in Germany. DIW Berlin’s construction volume calculation indicates a real expansion of construction services by around three percent each year over the next two years. In nominal terms, sales in the construction industry and its related sectors will grow by around 6.5 percent in 2020 and almost six percent in 2021. ...

Ganzes Heft

Green Public Procurement: Climate Provisions in Public Tenders Can Help Reduce German Carbon Emissions

This report estimates that government consumption and investment are responsible for at least 12 percent of German greenhouse gas emissions, mostly arising from the provision of public services and construction. Climate-friendly Green Public Procurement (GPP), which takes into account the carbon footprint of products and services in public tenders, can help reduce these emissions. Construction, and ...

Ganzes Heft

German Economy: Industry Struggles to Shake of the Crisis: DIW Economic Outlook

The German economy remains weak as of the fourth quarter of 2019. However, although industrial production is continuing its downward trend, there are signs of a slow recovery. The manufacturing sector is likely to expand production gradually beginning in 2020; therefore, it is less likely the recession in the industry will affect the service sector and construction industry. These sectors are profiting ...

Global Economy Continues to Suffer Weak Growth Momentum: DIW Economic Outlook

Favorable labor market conditions and the resulting increase in private consumption are still sustaining the global economy. Trade disputes and political uncertainties, however, continue to slow investment activity, with the result that economic growth will only be moderate particularly in advanced economies. By contrast, growth is accelerating in emerging markets, especially in India. Global economic ...

Strengthen the Foundation of the German Economy: Editorial