IWH European Real Estate Index
IWH European Real Estate Index The IWH European Real Estate Database is a new data...
Speed Projects On this page, you will find the IWH EXplore Speed Projects in...
Macro data interactive
Macro data interactive This service provides time series from official publications (Statistisches Bundesamt [German Federal Statistical Office], Arbeitskreis...
Transformation tables for administrative borders in Germany
Transformation tables for administrative borders in Germany The state has the ability...
09.11.2021 • 27/2021
IWH Bankruptcy Update: Still No Indication of Impending Bankruptcy Wave
The number of corporate bankruptcies in Germany edged slightly upward in October following several months of historic lows. The number of jobs impacted by bankruptcy also remained unusually depressed. These are the headline figures from this month’s IWH Bankruptcy Update, a report on German bankruptcy statistics published by the Halle Institute for Economic Research (IWH).
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COVID-19 Financial Aid and Productivity: Has Support Been Well Spent?
Most European Union countries have made good progress with vaccinating their populations against COVID-19 and are now seeing a rebound in economic activity. While the scarring effects of the crisis and the long-term implications of the pandemic are only partially understood, the effects of support given to firms can be evaluated in order to help plan the removal of crisis support. An analysis of France, Germany and Italy shows the potential for ‘cleansing effects’ in that it was the least-productive firms that have been affected most by the crisis. While support was generally not targeted at protecting good firms only, financial support went by and large to those with the capacity to survive and succeed. Labour schemes have been effective in protecting employment.
Economic Forecasts IWH regularly generates various economic forecasts for the...
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Worker Participation in Decision-making, Worker Sorting, and Firm Performance
Worker participation in decision-making is often associated with high-wage and high-productivity firm strategies. Using linked employer–employee data for Germany and worker fixed effects from a two-way fixed-effects model of wages capturing observed and unobserved worker quality, we find that plants with formal worker participation via works councils indeed employ higher quality workers. We show that worker quality is already higher in plants before council introduction and further increases after the introduction. Importantly, we corroborate previous studies by showing positive productivity and profitability effects even after taking into account worker sorting.
Explaining Wage Losses After Job Displacement: Employer Size and Lost Firm Wage Premiums
Journal of the European Economic Association,
This paper investigates whether wage losses after job displacement are driven by lost firm wage premiums or worker productivity depreciations. We estimate losses in wages and firm wage premiums, the latter being measured as firm effects from a two-way fixed-effects wage decomposition. Using new German administrative data on displacements from small and large employers, we find that wage losses are to a large extent explained by losses in firm wage premiums and that premium losses are largely permanent. We show that losses strongly increase with pre-displacement employer size. This provides an explanation for large and persistent wage losses reported in previous displacement studies typically focusing on large employers, only.