The free movement of workers within the European Union does not place a burden on labor markets or social services. This is the conclusion of a recent study on the development and effects of east-to-west migration in the wake of EU enlargement in 2004 and 2007. In this light, Germany's...

Even though the share of workers retiring prematurely is growing, the average age of the labor force is rising because the younger age groups are contracting and the length of time they spend in education is increasing. And yet the German higher education system is relatively unproductive. While...

Following the enormous growth in household incomes in the former East Germany during the first half of the 1990s (which was based, in particular, on meteoric wage rises, accompanying pension adjustments, and the increase in receipt of social welfare benefits), east German incomes subsequently...

The upcoming World Cup has raised high expectations in Germany, not just for the national team, but for the economy as well. As the cyclical upswing has mainly been supported by exports so far, hopes have been growing recently that this sporting event will have a positive and stimulating effect...

Net real wages in Germany have hardly risen since the beginning of the 1990s. Between 2004 and 2008 they even declined. This is a unique development in Germany-never before has a period of rather strong economic growth been accompanied by a decline in net real wages over a period of several...

Following an unprecedented contraction in GDP, the German economy returns to expansion. Growth will be modest in 2010, however, as the forces of the recovery are not yet stable. This is the key result of the Autumn outlook of the German Institute for Economic Research (DIW). DIW expects...

Great expectations were connected with the so-called Hartz IV reform which came into effect five years ago. In fact the number of unemployed recipients of Hartz IV benefits drastically went down during the last economic rebound. In earlier economic cycles the number of unemployed recipients of...

Much work awaits the new U.S. president. The U.S. has been financially depletedby the Iraq war, economic programs and necessary financial system restructuringcosts. The current financial crisis requires a government that takes an active hand ineconomic matters; at the same time, however, the...

With Germany's banking sector still suffering from the effects of the financial crisis, public discussion of plans to place toxic assets in one or more bad banks has gained steam in recent weeks. The following paper presents a bad bank plan from the German Institute for Economic Research. The...

To date, the Great Recession has only had a mild impact on the German labor market. In view of the uncertainties surrounding future economic growth, the low utilization of the workforce in firms, and the prevalence of working hour reductions, many observers are anticipating a dramatic rise in...