Income and poverty risk in Germany are dependent on whether a household has children. Particularly for families, public income redistribution measures do not cover the costs.

Despite the use of numerous instruments of public income redistribution, income and poverty risk in Germany depend greatly on the type of household concerned, and whether or not there are children in a household. A study carried out by the Centre for European Economic Research (ZEW) on behalf of the Family Policy Commission of the Heinrich Böll Foundation shows that, on average, households with children do not manage to gain a total income, through state benefits, paid employment and other sources of revenue, which fully covers the extra needs associated with the presence of children. This is particularly the case for single parents. If weighted according to need, the disposable income per capita of unemployed single-parent households is only 45 per cent of the disposable income of childless couples.

China Economic Panel
China | Cyclical indicator | Short-term forecast | Business survey | China Economic Panel
China Economic Panel (CEP) - May 2016

Expectations for the Chinese business cycle have slightly worsened in the current survey period (23/05/2016 – 07/06/2016). The CEP Indicator, which reflects the expectations of international financial market experts regarding China’s macroeconomic development over the coming twelve months, has dropped by 5.3 points to a current reading of 4.1 points.

Digitisation | Labour market flexibility | OECD countries | Computer-Aided Manufacturing | OECD
In the course of the digitisation of the labour markets in OECD countries, machines tend to rather replace certain tasks at the workplace than professions as such.

In the next two decades, nine per cent of current jobs in the OECD countries (Organisation for Economic Co-operation and Development) will be technically automatable by progressing digitisation – significantly less than has been feared. This is the result of a new study carried out by the Centre for European Economic Research (ZEW), which for the first time analysed the automation risk of jobs in 21 OECD countries based on a task-based approach. Despite far fewer jobs being automatable, the study shows that low-qualified employees are under stronger pressure to adapt. A great demand for advanced training and retraining emerges.

Research funding | ZEW | Research Award
Jury members and Prize winners (from left to right): Manfred Soßong (Volksbank Weinheim), ZEW Director of Business and Administration Thomas Kohl, Dr. Kai Spohrer, Professor Armin Heinzl (University of Mannheim), Reinhold Kesler, Torsten Dämgen (Volksbank

The research award "Zukunft der Arbeitswelt" ("The Future of the Working World") has been conferred by the Volksbank Weinheim Foundation in cooperation with ZEW for the third time. As part of the fourteenth ZEW Conference on the Economics of Information and Communication Technologies (ICT), Dr. Kai Spohrer (32) was presented the award for the best doctoral thesis. In addition, Reinhold Kesler (26) received the award for the best Master's thesis.

Dates and News
Market mechanism | Regulation | ZEW

On June 1, 2016, the new Research Group "Market Design" started its work at the Centre for European Economic Research (ZEW) in Mannheim. The group's focus lies on the analysis and optimisation of markets. Its aim is to improve the performance of existing markets by actively shaping market rules. To this end, it examines the peculiarities of each market and identifies their prevailing modes of action.

Innovation activity | Innovation | Research and Development | Germany | Enterprise
Financial strength and a strong innovation performance go hand in hand. Businesses holding a considerable amount of capital innovate more frequently and generate higher productivity gains from their innovations

Businesses holding considerable amounts of capital benefit significantly more from investments made in research and development (R&D) than firms with less capital. As a result of R&D activities, businesses with large amounts of capital increase their long-term value by an average of 11.6 per cent, whilst businesses holding less capital increase business value by only 2.3 per cent. This is the finding of a study carried out by the Centre for European Economic Research (ZEW) concerning 1,200 German businesses from five high-tech branches of the manufacturing industry, namely, the chemicals sector, mechanical engineering, electrical engineering, vehicle manufacture and the manufacture of technical and medical instruments. The study period covered the years 1993 to 2008.

CEE Indicator of Economic Sentiment
Turkey | Cyclical indicator | Short-term forecast | Central-Eastern Europe | Business survey | ZEW-Erste Group Bank Economic Sentiment Indicator for Central and Eastern Europe (CEE)
In May 2016 financial market experts’ expectations for the Czech Republic and Hungary are the most positive.

Economic expectations for Central and Eastern Europe including Turkey (CEE region) have improved in May 2016. In the current survey the ZEW-Erste Group Bank Economic Sentiment Indicator for the CEE region has increased by 13.0 points to a level of 4.6 points. Among the individual countries, the indicators for the Czech Republic (up by 29.8 points) and Hungary (up by 26.9 points) have seen the largest increases.

CH Indicator of Economic Sentiment
Business survey | Cyclical indicator | Short-term forecast | Switzerland | ZEW-CS-Indicator
With a reading of 17.5 points in May 2016, the ZEW-CS-Indicator for the economic sentiment in Switzerland has reached its highest assessment balance since October 2015.

The ZEW-CS-Indicator for the economic sentiment in Switzerland has increased by 6.0 points to a reading of 17.5 points in May 2016. By this improvement, economic expectations have reached their highest assessment balance since October 2015. The economic situation of Switzerland currently stands at exactly zero points. The ZEW-CS-Indicator reflects the expectations of the surveyed financial market experts regarding the economic development in Switzerland on a six-month time horizon. It is calculated on a monthly basis by the Mannheim Centre for European Economic Research (ZEW) in cooperation with Credit Suisse (CS), Zurich.

ZEW Indicator of Economic Sentiment
ZEW Indicator of Economic Sentiment | Business survey | Germany | Short-term forecast | Cyclical indicator | Business Cycle
ZEW Indicator of Economic Sentiment in Germany May 2016

The ZEW Indicator of Economic Sentiment for Germany has declined slightly in May 2016. The index has decreased by 4.8 points compared to the previous month, now standing at 6.4 points (long-term average: 24.4 points)."The strong growth of the German economy in the first quarter of 2016 appears to have surprised the financial market experts. However, they seem not to expect the economic situation to improve at the same pace going forward. Uncertainties regarding developments such as a possible Brexit currently inhibit a more optimistic outlook," says Professor Achim Wambach, PhD, President of ZEW.

ZEW Annual Report
ZEW Annual Report | Balance sheet | Annual report (company)
Full house at the press conference during which Achim Wambach signed his contract as the new ZEW President: ZEW Director of Business and Administration, Thomas Kohl, Chairwoman of the ZEW Supervisory Board, Theresia Bauer MdL, Professor Achim Wambach, and

Despite the challenging, competitive environment, the Mannheim Centre for European Economic Research (ZEW) has again performed well in the business year 2015. This is illustrated by the high proportion of third-party funding in the institute's overall budget (46 per cent), and by the more than 200 scientific projects which have been conducted in the past year of business. It is in particular on an international level, that the research institute has been able to expand its strong position and network. 21 per cent of the third-party funding received, for example, was assigned to ZEW by the European Union. This is a significant achievement, given the fact that ZEW had already performed outstanding work on behalf of the EU in previous years, which is illustrated by the institute’s excellent ranking amongst other economic research institutes in the German Research Foundation’s (DFG) "Förderatlas 2015" (Funding Atlas 2015).


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