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Welcome at the Institute for Applied Economic Research at the University of Tübingen (IAW)

The Institute for Applied Economic Research, located in Tübingen, Germany, is an independent research institute at the University of Tübingen. The IAW’s objective is

to apply economic and social research to issues relating to the private and public economy. Its scientific work contributes to the empirical basis for economic policymaking.

Subjects

News

Shadow economy to continue slight upward trend in 2026.

The shadow economy in Germany will continue its long-term upward trend in 2026. The main causes are weak growth in the official economy and rising unemployment.

According to the latest findings of a forecast by Professor Friedrich Schneider (University of Linz) and the Institute for Applied Economic Research (IAW), the shadow economy will grow to a nominal value of €538 billion. This represents an increase of 5.5 percent over the previous year. Adjusted for inflation, the increase is 2.8 percent. The ratio of the forecast shadow economy to measured gross domestic product (GDP) will increase slightly from 11.4 to 11.6 percent.

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Job advertisement

For the IAW research focus “Labour Markets and Social Security,” we are looking for a Research Assistant (m/f/d)
(50% to 75%, E 13) to assist with statistical studies as soon as possible. You can find more details about the tasks and requirements (in German) here.

Investments and innovations ensure employment growth and a higher demand for well-qualified workers in the country.

On behalf of the Baden-Württemberg Regional Directorate of the Federal Employment Agency, the IAW has conducted a new study examining the effects of investment and innovation on employment trends and employee qualifications in Baden-Württemberg between 2008 and 2023.

The three most important findings of the new IAW study are:

  • Although the proportion of companies investing will fall from over 60 percent to below 50 percent between 2008 and 2023, it is positive that over half of the companies that do invest are making expansion investments and thus focusing on growth.
  • Innovative companies are focusing in particular on product and process improvements rather than on new products or markets that promote growth. However, it is positive that the proportion of companies with innovations will rise from just under 40 percent to around 50 percent between 2008 and 2023. Industry is particularly innovative and is more involved than average in research and development.
  • Investments (especially expansion investments) and innovations (especially product innovations) are ensuring that the demand for skilled workers is increasing.

Press release no. 2 from the Federal Employment Agency (in German).

The IAW short report 2/2025 (in German) can be found here.

News from the IAW: IAW News 4/2025 online

  • Unemployed people receiving citizen's income: More help for self-help in job hunting
  • The Saxon economy in transition. Crisis management strategies and the role of labour law regulations
  • Wealth disparities between eastern and western Germany: Potential for further development of state support
  • New studies on vocational training and continuing education in Baden-Württemberg published

IAW-News 4/2025 (in German)

Subjects

In the following, you will receive an overview of the individual subjects. For more information please click on the topic of interest.

In this field of research, IAW mainly focuses on impact analyses and process-accompanying evaluations of various labor market policies. Another research topic are the effects of legal regulations on the labor market.

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Labor market policy

Demographic change, the shortage of skilled workers and the increasing inequality of market incomes are central challenges for the social security system. Our research focuses on poverty and wealth, social mobility, rehabilitation and retirement, and working conditions in care.

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Social policy and nursing

Research on education issues is an important field of research at the IAW. The focus is on the transition between school and work, on the development of training and further education, on digitization processes in the education sector and on the returns to education.

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Educational research

The IAW feels closely connected to the state of Baden-Württemberg and its economic and social development. In many research projects, we examine current challenges, opportunities and risks of companies and employees in different industries and regions of Baden-Württemberg.

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Baden-Württemberg

We investigate the significance of international trade and migration for incomes and employment in the state of Baden-Württemberg and the German economy. The focus of our research lies in trade agreements as well as European Integration on goods and factor markets.

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Foreign trade

Due to demographic change, the topics of migration and integration will gain in importance in the future. Quantitative questions becoming increasingly important for the national economy, e.g. forms of managing immigration and the attractiveness for potential migrants, while qualitative questions may treat about criteria for successful integration.

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Migration and integration