Alumni
IWH Alumni The IWH maintains contact with its former employees worldwide. We involve our alumni in our work and keep them informed, for example, with a newsletter. We also plan…
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3rd TSI Workshop
Presentations 3rd TSI Workshop Vienna The 3rd TSI Workshop, spanning two days, featured presentations and discussions on various aspects of micro data analysis and the Micro Data…
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4th TSI Workshop
4th TSI Workshop The 4th Technical Support Instrument (TSI) Workshop was a significant event in the TSI program series, focusing on enhancing collaboration among National…
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Monetary Policy
Monetary policy How firms respond to sudden changes in profitability affects the process of job creation, job destruction, aggregate investment and how fast resources are…
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Firm Responsiveness
Firm responsiveness How firms respond to sudden changes in profitability affects the process of job creation, job destruction, aggregate investment and how fast resources are…
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08.01.2025 • 1/2025
IWH founds a European centre for microdata research
The Halle Institute for Economic Research (IWH) is once again growing significantly. A new institute unit will generate access to microdata from European countries to facilitate new research on productivity, a prerequisite for prosperity. The IWH's budget increases by almost one million euros per year.
Reint E. Gropp
Javier Miranda
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Reservation Raises: The Aggregate Labour Supply Curve at the Extensive Margin
Preston Mui, Benjamin Schoefer
Review of Economic Studies,
Vol. 92 (1),
2025
Abstract
We measure desired labour supply at the extensive (employment) margin in two representative surveys of the U.S. and German populations. We elicit reservation raises: the percent wage change that renders a given individual indifferent between employment and nonemployment. It is equal to her reservation wage divided by her actual, or potential, wage. The reservation raise distribution is the nonparametric aggregate labour supply curve. Locally, the curve exhibits large short-run elasticities above 3, consistent with business cycle evidence. For larger upward shifts, arc elasticities shrink towards 0.5, consistent with quasi-experimental evidence from tax holidays. Existing models fail to match this nonconstant, asymmetric curve.
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Macroeconomic Reports
Macroeconomic Reports Local and global: IWH regularly provides current economic data – be it about the state of the East German economy, the macroeconomic development in Germany…
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East Germany
The Nasty Gap 30 years after unification: Why East Germany is still 20% poorer than the West Dossier In a nutshell The East German economic convergence process is hardly…
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Management Board and Supervisory Board
Management Board and Supervisory Board As an association established and registered under German civil law the IWH is composed of different internal bodies through which it is led…
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