For a Sustainable Contribution Rate of the Statutory Unemployment Insurance
Ingmar Kumpmann
Wirtschaft im Wandel,
No. 11,
2007
Abstract
The German Federal Government has decided to decrease the contribution rate of the statutory unemployment insurance from 4.2 to 3.3 per cent of gross wages. The unemployment insurance retards the income loss in times of increasing unemployment, which has a dampening effect on the business cycle. In order not to countervail this effect it is necessary to hold the contribution rate stable over times with high and low unemployment. Therefore, the budget surplus of the unemployment insurance agency in the current economic upswing is no sufficient argument for a contribution cut. A present reduction of the contribution rate induces the risk of a new contribution rise in the next economic slowdown. It would be better to build up sufficient reserves so that a contribution rise will be avoidable even in times with increasing unemployment.
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Transport Costs and the Size of Cities: The Case of Russia
Albrecht Kauffmann
Volkswirtschaftliche Diskussionsbeiträge der Wirtschafts- und Sozialwissenschaftlichen Fakultät, Universität Potsdam, Nr. 93,
No. 93,
2007
Abstract
Real costs of freight transportation have strong increased in Russia particularly during the period of price liberalization 1992–93. This paper investigates possible connections between rising transport costs and the evolution of the size structure of the system of cities in the Russian Federation and its federal subjects. Empirical findings suggest that under conditions of a closed system agglomeration processes according to the predictions of the model of Tabuchi et al. (2005) would have taken place especially in the periphere regions of the North and Far East.
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Structural Policy in East Germany – A Discussion about the Common Task “Improvement of Regional Economic Structure“
Mirko Titze
Wirtschaft im Wandel,
No. 10,
2007
Abstract
After the reunification – more than ten years ago – the convergence process in the eastern German regions has started. Unfortunately, the convergence process has decelerated since 1995. For this reason, economists and politicians are discussing the kind of government aid, which has been applied since the early nineties. The paper deals with the Common Task “Improvement of Regional Economic Structure“ (Gemeinschaftsaufgabe “Verbesserung der regionalen Wirtschaftsstruktur“). It is one of the most important instruments for the “Reconstruction East“. Empirical studies have shown that this instrument has led to an additional growth impulse. However, for the last ten years the budget of the Common Task has decreased. Under the restriction of scarce financial resources the governments of the federal states have to adjust their regional programmes. Economists and politicians dispute to change unselective into selective (regional and sectoral) government aid. The article shows that in particular the Federal State of Brandenburg as well as the Free State of Saxony are focusing the Common Task on specific industrial sectors and certain regions.
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Vergleich der Weiterbildungsaktivitäten von Arbeitslosen und Vollzeiterwerbstätigen
Birgit Schultz, Joachim Wilde
IWH Discussion Papers,
No. 9,
2007
Abstract
Many empirical studies consider either training activities of the unemployed or training activities of the employees in Germany. However, a comprehensive comparison of both groups is missing. The paper closes this gap. Using data of the latest time use survey (Zeitbudgeterhebung) of the Federal Statistical Office, the amount of training is compared for both groups. Furthermore, it is described which types of activities are made use of in particular. Heterogeneity due to different relevant socioeconomic characteristics in the two groups is eliminated by the appliance of a matching procedure. Findings demonstrate that only 49% of the unemployed persons participate in any kind of training activities off the job. In case of the full-time employment 59 % would take part. Concerning the average expenditure of time per week the difference turns around, i.e. the expenditure of time is higher during unemployment. However, a high proportion of the training activities of the unemployed falls upon general training, e.g. by reading books or watching TV. Furthermore, the result is driven by a different potential of time that can be used for training activities off the job. Relating to this potential of time the amount of training activities is still lower during unemployment.
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Führt die Umsetzung des Programms „Stadtumbau Ost“ zur Herausbildung urbaner Regime in ostdeutschen Städten?
Peter Franz
One-off Publications,
No. 5,
2007
Abstract
Many East German cities are suffering from housing vacancies and depopulation. The federal state has launched a subsidy program “Stadtumbau Ost” (City Reconstruction East) to fight the problems caused by these conditions. Cities getting funds from this subsidy program have installed committees and expert circles for making decisions where in the city to remove housing units. The institutionalisation of these decisional structures besides the established local political system is the starting point of the author to examine if these structures already are qualifying as “urban regimes” an approach primarily developed by US-American political scientists.
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Das Programm „Stadtumbau Ost“ und seine wirtschaftlichen Effekte für die beteiligten Städte
Claus Michelsen, Martin T. W. Rosenfeld
Wirtschaft im Wandel,
No. 6,
2007
Abstract
Political measures in the field of urban development have relevant impacts on the local and regional economy, for example on private investment, the value of real estate or the image of a city. An evaluation of national (federal) programs for the support of urban development would not be complete without considering these impacts. For the measures, which are supported by the federal program for support on “Urban Redevelopment in East Germany” (“Stadtumbau Ost”), the economic conditions of the supported cities have played, so far, only a minor role. One expression for this is that the measures for demolishing (“Rückbau”) were concentrated on quarters with prefabricated buildings. From the perspective of local and regional economic development, there have also been failures in the allocation of money for increasing the value of real estate (“Aufwertung”), as the article shows for the example of the state of Saxony.
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Zeitpotential für berufliche Weiterbildung von Arbeitslosen wenig genutzt
Joachim Wilde, Birgit Schultz
Wirtschaft im Wandel,
No. 5,
2007
Abstract
In general, unemployed persons spend more time on further training than full-time employees. Using data of the latest time use survey (Zeitbudgeterhebung) of the Federal Statistical Office, this study analyzes whether this higher potential of time is being used or not. Furthermore, it describes which types of activities are made use of in particular. Heterogeneity due to different relevant socioeconomic characteristics in the two groups is eliminated by the appliance of a matching procedure.
Findings demonstrate that only around 15 % of the unemployed persons participate in further training activities off the job. In case of the full-time employment just under 40 % of the persons would take part. Relating to the average expenditure of time per week the difference decrease clearly. However, altogether the expenditure of time is not higher during unemployment.
A selection of subsamples points out different results, i.e. in some subsamples the expenditure of time for further training is larger during unemployment. However, in the subsample of low skilled persons these results are mainly caused by activities like hearing radio or watching TV. Thus, it is doubtful whether the higher expenditure of time qualifies for the primary labour market.
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Considerable Export Potentials in Eastern Germany
Götz Zeddies
Wirtschaft im Wandel,
No. 2,
2007
Abstract
For a long time, the Federal Republic of Germany is one of the countries with the highest export performance in the world. But a closer examination of East- and West-Germany reveals substantial regional differences. The collabse of the markets in the eastern European countries, which were the main trading partners of GDR, after the breakdown of communism caused a sustainable decline of East-German exports. Nevertheless it was expected that the economic recovery in the former communist countries and the access to new export markets in the western world would cause an upward movement of East-German Trade. Although during the last years East-German exports grew faster than those of Western Germany, the east German share in Germanys total exports is still comparatively low. On the basis of a gravity-model of trade, bilateral export potencials are empirically analysed. This is done for the Federal Republic of Germany as a whole, and seperately forEast and West-Germany. Afterwards, the calculated export potencials are compared with actual exports. The results show that Germany as a whole exceeds its export potencial against the majority of its main trading partners. The differentiated analysis for East and West-Germany supports the hypothesis that Germanys high export performance stems from the western part of the country, whereas the eastern part exploits its export potencial with Germanys main trading partners only to the half. The unexploited export potencials as well as the higher concentration on the fast-growing central and eastern European markets imply considerable potencials for East-German exports to grow in the future.
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Leistungen und Defizite der Wirtschaftspolitik in Ostdeutschland. Ein Bericht über die Tagung
Mirko Titze
Deutschlandarchiv. Zeitschrift für das vereinigte Deutschland,
No. 5,
2007
Abstract
More than ten years after the German reunification the eastern part of Germany is still less developed than the "former" Federal Republic of Germany. This article includes a report about the conference "Reconstruction East" which has taken place from 16-18 March 2007 in Tutzing. Many experts discussed failures and efforts after the German reunification. As a result, it was summarised that the process of German reunification is more successful than it seems to be. Yet, in some western German and European regions we can denote phenomena which are similar to the development in East Germany. Against this background we need a straightforward discussion about the relevant regions. This article deals, firstly, with the East German economy before and after the reunification. Secondly, convergence processes are described. Finally, we illustrate schemes of an improvement of the current situation.
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Interregional equalization policy in focus: Donor regions and beneficiary regions and their economic performance
Gerhard Heimpold, Peter Franz
Wirtschaft im Wandel,
No. 11,
2006
Abstract
The future of the interregional equalization policy in Germany is discussed intensively at present. While in the past the interest of equalization policy was focussed primarily on the regions which benefit from interregional equalization policy (beneficiary regions) and the effects obtained there, recently the view is directed also toward the regions which bear the fiscal burden of the equalisation policy (donor regions). Concerning the donor regions, a fear of growth-absorbing withdrawal effects exists, which gives reason in view of declining economic growth rates on the national level to think about the future of interregional equalization policy. The IWH contributed to this debate together with two project partners by an investigation, which was accomplished on behalf of the Federal Office for Building and Regional Planning. The following findings will show the economic performance of the donor regions (exclusively West German regions) and of the beneficiary regions (all East German regions and a few West German regions) and their changing economic growth patterns. Concerning the level of economic performance, measured by means of the gross domestic product (GDP) per capita, as expected, the donor regions, consisting of West German regions, in the period 1992-2003 altogether show an above average GDP per capita. In contrast, the beneficiary regions, both the East German and (less strongly) the West German show a GDP per capita below average. Concerning the development of the economic performance, which was measured on the basis of the relative GDP per capita (GDP per capita of the region concerned in relation to the national average), the East German beneficiary regions could catch up in the first period (1992-1998) strongly. This catching up process, however, clearly slowed down in the second period 1998-2003. Like a mirror-image the lead of the donor regions regarding GDP per capita in relation to the national average became smaller. But after 1998 many West German donor regions regained their growth dynamics. Additionally the contributions of the regions to the absolute increase of the GDP in the period 1998-2003 were investigated: 30 of 271 regions have a share of around 50% in the overall GDP increase, 28 of them located in West Germany, and 21 of them donor regions. This in mind, the policy should further provide and secure favourable development conditions for those regions, which contribute at most to the increase of the overall economic performance and thus create the economic base for the interregional equalization policy.
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