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Press Release

Youth in Europe have major labor market problems despite lower unemployment

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 ...

02.11.2017
Comment

Op-ed of Franco-German Economist Group on EMU reforms

The euro area has recently seen some good news. A broad-based economic recovery is under way. Significant institutional reforms have been achieved, particularly in the area of banking union. Significant economic reforms are under way in several countries, including in France. As French and German economists committed to Europe and to the friendship between our countries, we are nonetheless concerned ...

27.09.2017| Marcel Fratzscher
Economic Bulletin

German economy still running at high capacity

The German economy is on track for continued growth. Due to the unexpectedly robust first six months of 2017, the German Institute for Economic Research is raising its forecast for GDP growth to 1.9 percent for the current year. This year and arguably for the coming two years, the country’s output will exceed potential output; nonetheless, there is no risk of overheating. Economic growth will ...

08.09.2017
Economic Bulletin

Increased labor market participation can’t do the job of mastering Germany’s demographic change in the future

In the last decade the available labor force has expanded in Germany—despite the decline in the working-age population. The reason: labor market participation has increased, for women in particular and older people in general. Also noticeable was a rise in qualification level because well-educated people have a particularly high propensity to participate in the labor market. Most recently, Germany’s ...

04.09.2017
In the media

Why a Franco-German bargain will help secure the euro

The op-ed by Marcel Fratzscher was first published on FT.com on August 9, 2017. The gains would outweigh the costs and help chart a path for the continent’s future As Germany heads towards its general election one of the debates in Berlin and elsewhere is what course the next government will pursue on Europe. In particular there is much speculation about a possible “grand bargain” ...

15.08.2017
Economic Bulletin

Income groups and types of employment in Germany since 1995

This report examines how income groups and forms of employment in Germany have changed in the past two decades. Since the mid-1990s, inequality in disposable household income in Germany has generally increased. This trend was in effect until 2005. While fewer people had disposable incomes in the median range, the proportion of the population at both tails of the income distribution increased. At the ...

14.07.2017| Christian Franz, Marcel Fratzscher, Peter Krause
Interview

"Regular employment continues to play important role": Five questions for Peter Krause and Christian Franz

Mr. Krause, you took a close look at income groups in Germany. What did you hope to accomplish? Peter Krause: We wanted to bring together two discussion threads in our study. One thread has to do with the long-term trend in inequality of household income distribution and the other, with changes in labor force participation. Until the mid-2000s, inequality in disposable household income increased and ...

14.07.2017| Christian Franz, Peter Krause
Economic Bulletin

The gender gap in competitiveness: women shy away from competing with others, but not from competing with themselves

Women are less willing than men to compete against others. This gender gap can partially explain the differences between women’s and men’s education and career choices, and the labor market disparities that result. The experiments presented here show that even though women are less willing than men to compete against others, they are just as willing as men are to take on the challenge of ...

31.05.2017| Johanna Mollerstrom, Katharina Wrohlich
Economic Bulletin

Hourly wages in lower deciles no longer lagging behind when it comes to wage growth

For many years, only better-paid workers benefited from Germany’s real wage increases. In contrast, dependent employees with lower hourly wages suffered substantial losses, while the low-wage sector expanded. Around 2010, these trends came to an end. Now all wage groups benefit from wage increases—even if those in the middle of the distribution lag somewhat behind. At the very least, this ...

24.05.2017| Karl Brenke, Alexander S. Kritikos
Interview

"Real hourly wages: low-paid workers are not being left behind": eight questions for Alexander S. Kritikos

Mr. Kritikos, you’ve investigated the development of gross hourly wages in Germany. How have these wages developed since Germany’s reunification? Immediately after reunification, there were substantial hourly wage increases, up through 1997 or 1998. After that, growth was minimal through 2004, followed by wage losses until 2010. Since 2010, after the financial crisis, wages started picking ...

24.05.2017| Alexander S. Kritikos
In the media

America first, but Germany second

The op-ed by Marcel Fratzscher was first published on foreignpolicy.com on March 16, 2017. If Trump wants a Europe that takes care of its own needs, he needs a strong partner in Berlin. Donald Trump’s relationship with Angela Merkel has gotten off to a rocky start. Trump has, effectively, singled out Germany and its chancellor as his main nemesis in Europe. He has criticized her for her policy ...

17.03.2017
Report

IMF chief economist Maurice Obstfeld talked about the role of fiscal policy in advancing structural reforms in Europe at DIW Berlin

On Monday, Maurice Obstfeld, IMF chief economist and former economic advisor of Barack Obama, commented on the new IMF-Paper „Labor and product market reforms in advanced economies: fiscal costs, gains, and support” during a DIW Berlin event about „The role of fiscal policy in advancing structural reforms in Europe“. The paper concludes that reforms do not just grow the ...

14.03.2017
In the media

A German debate over the future of Europe is long overdue

The op-ed by Marcel Fratzscher was first published on FT.com on February 28, 2017. The emergence of Martin Schulz as the centre-left Social Democrats’ (SPD) candidate for chancellor has fundamentally altered the dynamics of German politics. It is also changing the debate in Germany on inequality and the future of Europe in ways that will have a significant impact across the continent. Germany ...

03.03.2017
Economic Bulletin

Refugee Integration: A Worthwile Investment

The initial fiscal costs associated with refugee integration a requite high—but as more and more refugees join the labor force, a reduction in ongoing welfare costs and an increase in government revenue will result. Against this background, the Institute for Employment Research (IAB) in Nuremberg and DIW Berlin conducted a joint investigation (funded by the German Federal Ministry of Labor and ...

02.02.2017| Maximilian Bach, Kristina van Deuverden, Peter Haan
Interview

"Companies should have more women on all levels of the hierarchy": seven questions for Elke Holst

Since January 1, 2016, Germany has a statutory gender quota for corporate supervisory boards. Women must be appointed to vacant positions until the board has a proportion of 30 percent. Mrs. Holst, it’s been almost exactly one year – is it possible to draw any initial conclusions? The law is showing some initial effects. For example, the companies subject to the gender quota have increased ...

20.01.2017| Elke Holst
Report

Presentation of the new World Bank Group report: “Poverty and Shared Prosperity 2016: Taking on Inequality”

On Wednesday, December 14, after a short introduction by Marcel Fratzscher, World Bank Group economists Mario Negre and Christoph Lakner will present the latest report from the Poverty and Shared Prosperity series, “Poverty and Shared Prosperity 2016: Taking on Inequality,” with a focus on its key findings. The presentation will be followed by a panel discussion moderated by Kati ...

09.12.2016
Report

DIW Europe Lecture with Barry Eichengreen

On Tuesday, December 13, the 3rd DIW Europe Lecture will be held on “The Populist Turn in American Politics: Implications for Europe”. In this lecture Professor Barry Eichengreen, Professor of Economics and Political Science at the University of California at Berkeley, will trace the populist turn in American politics from the late 19th century to the present day. The DIW Europe Lecture ...

06.12.2016
Report

Review: DIW Europe Lecture by ECB president Mario Draghi

On Tuesday, October 25, the 2nd DIW Europe Lecture was held on “Stability, Equity and Monetary Policy”. The President of the European Central Bank, Mario Draghi, looked at Europe’s economic and financial future: which challenges will Europe and the European Central Bank have to face in the months and years ahead? The speech held by the ECB president as well as a video of the event ...

27.10.2016
Report

Livestream of DIW Europe Lecture with ECB president Mario Draghi

On Tuesday, October 25, the 2nd DIW Europe Lecture will be held on “Stability, Equity and Monetary Policy”. The President of the European Central Bank, Mario Draghi, will look at Europe’s economic and financial future: which challenges will Europe and the European Central Bank have to face in the months and years ahead? The event will be streamed live.  The DIW Europe Lecture ...

20.10.2016
Press Release

Likelihood of holding a senior management position: gender gap largest in financial sector

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 ...

23.09.2016
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