The introduction of Germany’s minimum wage in 2015 did not cause substantial changes to overall employment; rather, it triggered large shifts in the composition and allocation of types of employment. How were financially constrained firms affected and how did they adapt following the introduction of the minimum wage?

When firms face lower investment costs, it not only encourages them to purchase new machinery and equipment but also helps secure and create jobs. An analysis of the German investment tax credit programme shows that this policy provided an important boost to the economy in the former East Germany after reunification.

Basic income is a simple idea on paper with regular, unconditional cash for everyone, but implementing it is anything but simple. In this interview, Professor David Green discusses findings from a major Canadian study, explains the appeal of basic income, why it might not deliver the transformation many expect, and outlines what kinds of policies read full article

While men and women are increasingly found in the same occupations, a surprising trend has emerged: Sectors are becoming more gender-segregated over time. Are these patterns shaped by discriminatory hiring practices or by individual preferences? Examining this question offers new insights into the complex dynamics behind gendered labour market outcomes.

In the public debate in Germany, it is often assumed that it is financially more attractive for migrants and refugees to remain on mean-tested benefits for unemployed people than to work. On the contrary: in Germany, there is no situation in which someone who works and takes advantage of all the transfers they are entitled read full article

Efforts to mitigate climate change and promote environmental sustainability have far-reaching implications for businesses and their employees. These efforts require firms to adapt their business models and processes to meet the demands of a greener economy. At the same time, it has become particularly challenging for firms to find employees with the necessary skills. This read full article

Like many other European countries, Germany is experiencing a rise in xenophobic attitudes. Yet within Germany, there are significant regional differences. Business- and political leaders believe that xenophobic sentiment is already jeopardising the attractiveness of some German regions as a business location. Two studies by the Institute for Employment Research (IAB) now show how xenophobic read full article

How does the use of artificial intelligence in training affect employee productivity? These and other questions were investigated as part of the long-term research project “ai:conomics” using company data from various large European companies. Initial results suggest that AI can have a positive impact on employee productivity, especially for new employees.

When Germany introduced its federal statutory minimum wage of 8.50 euro in 2015, it marked a major shift in labour policy. Fast forward to 2025, and the minimum wage is now 12.82 euro. Given annual increases in the minimum wage, there are ongoing debates about how minimum wages affect income inequality. It turns out the read full article