The current issue of IAW News contains a report on the 10th Bundesbank-IAW Lecture with the President of the Deutsche Bundesbank, Dr. Joachim Nagel. This issue also features research findings on the effects of the minimum wage and the implementation of the participation plan procedure in the field of rehabilitation.
Despite positive developments since 2023, companies are finding it increasingly difficult to fill their training positions.
In-company training is an important factor in securing skilled workers. Although the number of training contracts concluded has been rising in recent years, it is also becoming increasingly difficult to fill training places. A recent report by the IAW describes the training situation in companies in Baden-Württemberg and shows the conditions under which training places are offered and filled, as well as the factors that inhibit the availability of training.
The report was commissioned by the Baden-Württemberg Regional Directorate of the Federal Employment Agency.
According to the latest nowcast by the Institute for Applied Economic Research (IAW) and the University of Hohenheim, Baden-Württemberg's gross domestic product will grow by 0.4 percent in the third quarter of 2025 compared to the previous quarter, adjusted for seasonal and working day effects. Positive growth of a similar magnitude is also forecast for the following two quarters.
September 24/25, 2025: T H E Workshop 2025 at University of Hohenheim
The Tübingen-Hohenheim Economics (THE) association invites you to this year's THE workshop in combination with a mini-course on “Causal Machine Learning.”
The effects of the 2022 minimum wage increase on wages, wage distribution and working hours.
A current study by the IAW in cooperation with RWI – Leibniz Institute for Economic Research on behalf of the Minimum Wage Commission examines the effects of the minimum wage increase to 12 EUR in 2022 on wages, wage distribution and working hours. Using various methods, the study concludes that the substantial increase in the minimum wage significantly increased both hourly and monthly earnings and led to a reduction in wage inequality in the lower wage segment. The results also indicate that the exceptionally high minimum wage increase led to evasive reactions in the form of reductions in working hours and a decline in the overall volume of work in the economy. The study, together with reports from other economic research institutes, served as the basis for the Fifth Report on the effects of the statutory minimum wage by the Minimum Wage Commission.
For the 10th anniversary of the Bundesbank-IAW Lecture at the University of Tübingen, organized annually by the IAW in cooperation with the Bundesbank's Baden-Württemberg headquarters, a very special speaker was invited: Dr. Joachim Nagel, acting president of the Deutsche Bundesbank and thus head of the institution whose name the renowned lecture series bears. The lecture, held in English, took place in the almost full Audimax lecture hall at the University of Tübingen. In his speech, Dr. Nagel provided a detailed overview of the European Central Bank's monetary policy strategy since 2021 and answered numerous questions from the audience.
The economy in Baden-Württemberg could return to moderate growth despite high geopolitical risks. For the second quarter, the latest nowcast from the Institute for Applied Economic Research (IAW) and from the University of Hohenheim predicts real growth in gross domestic product (GDP) of 0.5%. Positive growth of a similar magnitude is also forecast for the two subsequent quarters.
