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Economic Expectations Remain Almost Unchanged

The ZEW Indicator of Economic Sentiment Stands at Minus 55.3 Points

16.08.2022 · ZEW (msc/fbr/sel)

ZEW Indicator of Economic Sentiment

The ZEW Indicator of Economic Sentiment for Germany decreases slightly by 1.5 points to a value of minus 55.3 points in the current August 2022 survey. The assessment of the economic situation in Germany also decreased and currently stands at minus 47.6 points, 1.8 points lower than in the previous month. Both the assessment of the economic situation and the expectations remain thus almost at the same level as in the July survey.

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Higher Pre-Pandemic Digitalisation Level Led to Less Short-Time Work in the 2020 Crisis

Impact of the COVID-19 Pandemic on the Labour Market

09.08.2022 · ZEW (sby/ybr)

Research

Local labour markets with high levels of digital capital – i.e. computers and other information and communication technologies (ICT) – before the pandemic had significantly fewer employees having to be put on short-time working during the first eight months of the pandemic in Germany. One channel for the effect of digital capital is that it is essential for employees to work from home. This is the result of a recent study by ZEW Mannheim. Regions with little digital capital, on the other hand, were at a disadvantage: in areas that were among the bottom 20 percent of the digital capital distribution in Germany, the share of employees on short-time work schemes was up to 25 percent above average during the first lockdown.

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Team Around ZEW Researcher Florian Baumann Awarded ALER Prize

American Law and Economics Association Awards Prize for Market Design Research Paper

08.08.2022 · ZEW (fba/ybr)

Personnel

The American Law and Economics Review (ALER) has awarded ZEW economist Florian Baumann and his co-author Professor Tim Friehe from the University of Marburg the Best Theory Paper Prize 2022 for the article “Strict Liability and Negligence with Search for Precautionary Measures”. This was announced at the annual meeting of the American Law and Economics Association on 4 and 5 August at Columbia Law School (USA).

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Minimum Wage Had Only Little Impact on Competitive Conditions

05.08.2022 · ZEW (mlu/sel)

Research

In July this year, the minimum wage rose to 10.45 euros gross per hour. In October, the minimum wage will be raised further to 12 euros. A study by ZEW Mannheim on behalf of the German Minimum Wage Commission now shows that the introduction of the minimum wage in 2015 as well as the first increase in January 2017 hardly caused any companies to exit the market. The researchers also observed that it even made some sectors become more productive, promoting competition overall.

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Working Time Performed from Home Increases Strongly in the Long Term – Especially in Large Firms

01.08.2022 · ZEW (der/sel)

Research

As a result of the COVID-19 pandemic, firms in Germany expect a strong increase in the amount of working time performed from home in the long term. As a recent business survey by ZEW Mannheim shows, firms in the information economy expect an average of 24 per cent of their employees’ working time to be done from home after the pandemic. Before the pandemic, this share was only 9 per cent of working time. Meanwhile, in the manufacturing industry, the average proportion of time worked from home doubles from 3 per cent before the pandemic to 6 per cent afterwards. “Small, medium and large firms all expect a significant increase in the share of working time from home. However, the expected shift to working from home is most pronounced in large firms,” says Dr. Daniel Erdsiek, researcher in ZEW’s “Digital Economy” Department.

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