Economic transformation and the world of work - A literature review.
A systematic literature review identifies and describes firm-level strategies for dealing with transformation processes and their implications for work and employment across five selected industries. The 67 company case studies included focus primarily on digitalization as a driver of transformation; larger firms covered by collective agreements are more likely to be examined. The studies focus on the design of technology and work organization, management and organizational control, training and continuing education, as well as the role of work councils and employee participation. Overall, the literature shows that change is mostly incremental and path-dependent. Whether jobs are upgraded and workers gain more autonomy depends on the extent to which employees and their representatives are involved in shaping the introduction of digital systems, how performance and process data are used, and whether dedicated training time is guaranteed.
IAW Study “Strategy for a Strong Economic Metropolis: Berlin” published.
Berlin has considerable potential for economic development. A diverse business landscape, science and research, a vibrant startup scene, and an international orientation characterize the city as a business location. At the same time, bottlenecks in financing, skilled labor, housing, transportation, international accessibility, and administration may limit further economic momentum. Commissioned by the Berlin Chamber of Commerce and Industry (IHK Berlin), the IAW conducted a study that essentially answers the question of what economic scale Berlin could achieve if it specifically addressed key location bottlenecks.
“Transformation Through Skilled Trades” – New Approaches to Recruiting Skilled Workers in the Skilled Trades Sector.
Demographic change, digitalization, and skilled worker shortages pose major challenges for the skilled trades sector. Against this backdrop, the Federal Employment Agency (BA) and the German Confederation of Skilled Crafts (ZDH) launched the pilot project “Transformation Through Skilled Trades” in 2021. The goal was to test new approaches to recruiting skilled workers and to enhance the appeal of the skilled trades as an employer.
The IAW conducted a scientific evaluation of the pilot project and its subprojects on behalf of the Federal Employment Agency’s Lower Saxony-Bremen Regional Directorate. The results and the resulting recommendations for action have now been published in theIAW Policy Reportsseries.
Benefits and Costs of Occupational Safety and Health Prevention Measures.
Measures to protect and promote health in the workplace involve costs, but at the same time can reduce absenteeism, maintain work capacity, and increase productivity. This is one of the findings of a scoping review of 282 individual studies and 123 literature reviews conducted by the IAW on behalf of the Federal Institute for Occupational Safety and Health (BAuA). The studies differ in terms of their methods, measures, and evaluation approaches, so that broad conclusions regarding cost-effectiveness can only be drawn to a limited extent. There is a particular need for further research on organizational prevention approaches as well as on the effects on social security systems and the economy as a whole.
AI has made its way into businesses in Baden-Württemberg, but is not yet widely used.
AI already plays a visible role in businesses in Baden-Württemberg: 31 percent of businesses in the state use generative and/or non-generative AI. Generative AI accounts for the bulk of this usage: 28 percent of businesses use generative AI, placing Baden-Württemberg above the Germany-wide average of 24 percent. Non-generative AI is significantly less common, at 7 percent.
The IAW recently published these and other interesting findings on the use of artificial intelligence (AI) in companies in Baden-Württemberg in the IAW Brief Report 1/2026. The analysis, based on the IAB Enterprise Panel 2025, was commissioned by the Baden-Württemberg Regional Directorate of the Federal Employment Agency.
News from the IAW: IAW News 2/2026 online.
When emergency personnel commute: Workforce mobility as a challenge for civil protection
Industrial policy support programs: linking economic transformation with social conditions and cushioning the impact
11th Bundesbank-IAW Lecture with Prof. Dr. mult. Dr. h.c. Ulrike Malmendier on May 7, 2026, at the University of Tübingen
New research project: Young adults' attitudes toward the welfare state
According to the latest nowcast by the Institute for Applied Economic Research (IAW) and the University of Hohenheim, Baden-Württemberg’s gross domestic product is set to rise by 0.4 per cent in the second quarter of 2026 compared with the previous quarter, adjusted for seasonal and working-day effects. Positive growth is also forecast for the following two quarters, although this is expected to slow towards the end of the year.
Ninth joint workshop organised by the ‘Women and Work’ contact points and the equal opportunities officers for the labour market. Stuttgart, Haus der Wirtschaft.
Keynote presentation:
Women’s employment in Baden-Württemberg – The role of work-life balance measures. A study based on the IAB Baden-Württemberg Firm Panel.
