DIW Weekly Report

Competitiveness and Convergence: Trade, Merger Control, Industry, and Innovation: Reports

Europe Must Focus on Its Strengths: Editorial

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In Germany, Younger, Better Educated Persons, and Lower Income Groups Are More Likely to Be in Favor of Unconditional Basic Income

Representative survey results have shown a stable approval rate for implementing unconditional basic income of between 45 and 52 percent in Germany since 2016/17. In European comparison, this approval rate is low. Younger, better educated persons, and those at risk of poverty support the concept of unconditional basic income in Germany. But these demographics are not the only factors that correlate ...

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The Low-Wage Sector in Germany Is Larger Than Previously Assumed

The total number of dependent employees in Germany has increased by more than four million since the financial crisis. Part of this growth took place in the low-wage sector. Analyses based on data from the Socio-Economic Panel, which in 2017 for the first time include detailed information on secondary employment, show that there were around nine million low-wage employment contracts in Germany that ...

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Ecological Tax Revenue Still Yields Lower Pension Contributions and Higher Pensions Today

The ecological tax reform that Germany implemented between 1999 and 2003 increased energy tax rates—especially on gasoline and diesel. Today, the ecological tax hikes yield an annual revenue of around 20 billion euros or 0.6 percent of GDP. The money is used to finance a higher federal grant to the public pension scheme. Calculations based on a pension simulation model show that the contribution rate ...

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German Economy in Recession: Bridging Pinch Points, Building Confidence, Boosting Demand: Editorial

German Economy Remaining Strong amidst Uncertainties: DIW Economic Outlook

Although the economic boom in Germany is over, a recession is not looming. The economy is still expected to grow by 1.0 percent this year despite its recent weaker performance. Consumption remains a mainstay of the economy; the average annual increase in the number of employees is likely to be just under half a million. At 1.5 percent, inflation is barely dampening purchasing power and together with ...

The Global Economy and the Euro Area: Weak International Trade, Robust Domestic Demand: DIW Economic Outlook

The current global economic environment remains harsh. Global growth rates stagnated in the fourth quarter of 2018, particularly affected by foreign trade. DIW Berlin’s forecast indicates global economic growth of 3.7 percent for 2019 and 3.6 percent for 2020. Positive stimuli are expected from catch-up effects (in the European automobile industry, for example) and the continued positive development ...

German Economy Growing despite Uncertainties and Risks; Global Economy Continuing to Cool Down: Editorial

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Also on Sundays, Women Perform Most of the Housework and Child Care

Paid and unpaid work are still distributed very unequally between men and women in Germany. Regardless of time restrictions imposed by gainful employment, there is a gender- specific gap in time spent on housework and child care (gender care gap). The total volume of paid and unpaid work on weekdays is roughly the same for men and women (approx. 11 hours), although women perform more unpaid and men ...

Strong Correlation between Large Gender Pay Gaps and Non-Linear Pay in Certain Occupations

The gender pay gap of 21 percent in Germany is partly due to the fact that men and women work in different occupations. However, considerable pay gaps between men and women can also be observed within occupations, although the gap is not constant across occupations. In particular, there is a substantial gender pay gap in occupations with non-linear earnings, i.e. earnings increase non-linearly with ...

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Italy Must Foster High Growth Industries

Italy has yet to recover from the economic consequences of the financial and sovereign debt crisis that began more than a decade ago. In addition to losing 1.4 million jobs across the manufacturing and construction sectors, new industries driving growth across the EU, such as knowledge-intensive services, are instead stagnating in Italy. Previous structural reforms focused on deregulating the labor ...

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Language Skills and Employment Rate of Refugees in Germany Improving with Time

Asylum seekers migrating to Germany remains a hotly debated topic. The second wave of a longitudinal survey of refugees shows that their integration has progressed significantly, even though some refugees came to Germany in poor health and with little formal education. Compared to the previous year, refugees’ German skills have improved, as have their participation rates in the workforce, education, ...