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DIW Economic Outlook: German Economy Fighting Its Way out of Winter Recession

The German economy has returned to a recovery course following a slight recession over the winter. Although the war in Ukraine, record inflation, and feared gas shortages have taken their toll on the German economy, a drastic slump failed to materialize. The German economy remained relatively unscathed, only experiencing a slight recession over the past six months; in the final quarter of 2022 and ...

Geographical Balancing of Wind Power Decreases Storage Needs in a 100% Renewable European Power Sector

To reduce greenhouse gas emissions, many countries plan to massively expand wind power and solar photovoltaic capacities. These variable renewable energy sources require additional flexibility in the power sector. Both geographical balancing enabled by interconnection and electricity storage can provide such flexibility. In a 100% renewable energy scenario of twelve central European countries, we investigate ...

Gender differences and stereotypes in media coverage of company board members

Women continue to be underrepresented in leadership positions in the corporate sector such as on company boards. One of the reasons for this underrepresentation are gender stereotypes on the skill distribution, social and occupational roles, personality traits, and how they affect labor market decision making. Media plays an important role in transporting gender stereotypes. In this paper we...

When Credit Turns Political: Evidence from the Spanish Financial Crisis

This paper provides causal evidence on the effect of credit crunches on political polarization. We combine data on bank-firm connections and electoral outcomes at the city-level during the 2008-2014 Spanish Financial Crisis. First, we show that firms in a relationship with weak banks experience a reduction in their loan supply and employment growth. Next, we estimate the effects of unemployment on ...

SOEP Annual Report 2022

Proximity to Refugee Accommodations Does not Affect Locals’ Attitudes toward Refugees: Evidence from Germany

With the so-called 'long summer of migration' of 2015, there was an urgent need to accommodate many refugees in Germany. This situation was framed as a 'refugee reception crisis', and it revealed diametrically opposed stances within German society. Within this debate, anti-refugee sentiment is often explained with the placement of nearby refugee reception facilities. Conclusive evidence of this claim ...

The Inequity Z: Income Fairness Perceptions in Europe across the Income Distribution

Using data from the European Social Survey, we examine income fairness evaluations of 17,605 respondents from 28 countries. Respondents evaluated the fairness of their own incomes as well as the fairness of the incomes of the top and bottom income deciles in their countries. Depicted on a single graph, these income fairness evaluations take on a Z-shaped form, which we call the "inequity Z". The inequity ...

Increasing disability benefits: selection and labor market effects.

We study the incentive and labor market effects of disability benefit programs using unique policy variation in Germany. In 2014, disability benefits of new recipients were increased considerably while eligibility criteria were not changed. We exploit this quasi-experimental policy variation to test the implications at two different margins. First, we analyze to what extent an increase in the...

Forward to the Past: Short-Term Effects of the Rent Freeze in Berlin

In 2020, Berlin introduced a rigorous rent-control policy responding to soaring prices by capping rents: the Mietendeckel (rent freeze). The German Constitutional Court revoked the policy only one year later. Although successful in lowering rents during its duration, the consequences for Berlin’s rental market and close-by markets are per se not clear. This article evaluates the short-term causal supply-side ...