Solidarity with Israel The Alliance of Science Organisations in Germany stands in solidarity with Israel. ...
Why Is the Roy-Borjas Model Unable to Predict International Migrant Selection on Education? Evidence from Urban and Rural Mexico ...
IWH FDI Micro Database
IWH FDI Micro Database The IWH FDI Micro Database (FDI = Foreign Direct...
The CompNet Competitiveness Database The Competitiveness Research Network (CompNet)...
Info Graphs Sometimes pictures say more than a thousand words. Therefore, we selected...
29.09.2022 • 23/2022
Joint Economic Forecast 2/2022: Energy crisis: inflation, recession, welfare loss
The crisis on the gas markets is having a severe impact on the German economy. Soaring gas prices are drastically increasing energy costs, leading to a massive reduction of the purchasing power. Despite a decline in the second half of the year, gross domestic product is expected to expand by 1.4% this year. For the coming year, the institutes expect a contraction by 0.4%, followed by an increase of 1.9% in 2024.
Read press release
Elderly Left Behind? How Older Workers Can Participate in the Modern Labor Market
In her 2021 State of the Union address, European Commission’s President Ursula von der Leyen announced that “[the EU] will invest in 5G and fiber. But equally important is the investment in digital skills.” Indeed, the EU Recovery and Resilience Facility, which runs until 2026, has earmarked substantial funds to tackle the digital divide, in acknowledgment of the fact that the EU is not only missing ICT specialists but also that many Europeans do not have sufficient digital skills to thrive in today’s society and labor market. Many observers argue that older workers in particular lack digital skills, suffering more often from computer anxiety and showing lower computer self-efficacy (Czaja et al. 2006). This lack of skills hampers their employability and productivity in a technologically fast-changing world.
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.