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  • SOEP Brown Bag Seminar

    Disappointed Hopes of Upward Mobility? A Study on Income Development in Germany 1995-2015

    Similar to many other OECD countries, income inequality in Germany has increased over the past decades. However, it is not yet clear to what extent there has actually been a decline at the household level. Our study therefore examines what is behind the increased income inequality: increases or decreases of household incomes or a change in the composition of the population. Using SOEP data from 19...

    07.02.2018| Karin Kurz and Jörg Hartmann (both University of Göttingen)
  • DIW Weekly Report 4/5 / 2018

    Company Productivity Increases with More Knowledge-Based Capital

    In Germany, around 200 billion euros are invested every year in knowledge-based capital, which encompasses assets such as research and development, software and databases, organizational capital, marketing and advertising, and technical design. Yet investments in traditional capital (such as machinery and non-residential buildings) still significantly outweigh knowledge investments, standing at over ...

    2018| Heike Belitz, Marie Le Mouel, Alexander Schiersch
  • Press Release

    Company productivity increases with more knowledge-based capital

    First study using official company records — more knowledge-based capital increases productivity — some sectors are already investing more in knowledge-based capital than in machines and buildings — economic policy must take a holistic approach towards investments Every year in Germany, around 200 billion euros are invested in knowledge-based capital, such as research and development ...

    01.02.2018
  • Refereed essays Web of Science

    Local and Spatial Cointegration in the Wage Curve – a Spatial Panel Analysis for German Regions

    The wage curve introduced by Blanchflower and Oswald (1990, 1994b) postulates a negative correlation between wages and unemployment. Empirical studies use different channels for a theoretical underpinning the relationship. Panel data models mostly draw on bargaining power or the efficiency wage hypothesis. Spatial econometric approaches can be rationalized by monopsonistic competition. However, the ...

    In: Review of Regional Research 38 (2018), 1, S. 53-75 | Reinhold Kosfeld, Christian Dreger
  • Press Release

    DIW Berlin Economic Barometer January 2018: the German economy is soaring

    The German economy continues to soar: the German Institute for Economic Research’s (DIW Berlin) Economic Barometer is at its highest reading in seven years. The index score for the first quarter landed at 118 points, an increase of almost four points compared to the last quarter of 2017. The Economic Barometer is thus well-above the 100-point mark that corresponds to the long-term average growth ...

    31.01.2018
  • Press Release

    The new grand coalition’s work program: DIW Berlin says there is still much to improve

    In important areas such as tax policy, education, and energy, the future grand coalition must be considerably more ambitious – The need for reform in Germany is not being addressed sufficiently Germany’s next government will most likely once again be a grand coalition. However, the results of the preliminary coalition talks between the Union parties and the SPD, which serve as a basis ...

    31.01.2018
  • Cluster-Seminar Öffentliche Finanzen und Lebenslagen

    Income Redistribution and Self-Selection of Immigrants: Evidence from Administrative Data

    We test the predictions of the Roy-Model about the self-selection of immigrants using an administrative dataset including about 90 % of Italians living abroad. The data comprises 13 countries with substantial differences in inequality and levels of redistribution: Argentina, Australia, Belgium, Brazil, Canada, France, Great-Britain, Germany, The Netherlands, New-Zealand, Switzerland, the US, and...

    31.01.2018| Guido Neidhöfer
  • SOEPpapers 952 / 2017

    Substantial Labor Market Effects of the Residency Status: How Important Are Initial Conditions at Arrival for Immigrants?

    This paper uses information on the legal status upon arrival to study long-term labor market effects, whereas selection and potential outmigration are taken into account by a large set of methods. I find that immigrants arrived with a job commitment in Germany achieve a longterm income advantage of 18.6% relative to other migrant groups, while language skills and ethnic networks can be excluded as ...

    2017| Eric Schuss
  • SOEPpapers 953 / 2017

    Optimal Taxation under Different Concepts of Justness

    A common assumption in the optimal taxation literature is that the social planner maximizes a welfarist social welfare function with weights decreasing with income. However, high transfer withdrawal rates in many countries imply very low weights for the working poor in practice. We reconcile this puzzle by generalizing the optimal taxation framework by Saez (2002) to allow for alternatives to welfarism. ...

    2017| Robin Jessen, Maria Metzing, Davud Rostam-Afschar
  • DIW Roundup 119 / 2018

    Monetary Policy Normalization in the Euro Area

    The ECB announced in October 2018 that it would begin to cut back the amount of monthly asset purchases starting January 2018 while extending the duration of the purchases until at least September 2018. At it latest Governor’s Council meeting in January 2019 it decided to remain on this track despite a sharp appreciation of the euro in the meanwhile. These steps were just two on a longer and potentially ...

    2018| Daniel Privitera, Malte Rieth
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