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.
Most unemployed people who receive basic income support benefits are generally satisfied with the job centers and their staff. This is shown by a study conducted by the IAW and the SOKO Institute on behalf of the Bertelsmann Foundation, based on a survey of approximately 1,000 benefit recipients aged 25 to 50 who have been receiving basic income support for at least one year. However, the results also show that two out of five respondents consider the support provided by job centers to be insufficient.
In in-depth interviews with 20 benefit recipients, the study examines the causes and consequences of these attitudes. It shows that satisfaction with the job center’s services is shaped by experiences in the job center’s counseling and placement process – for example, through active participation in the counseling process or the provision of appropriate training, or negatively by the experience of benefit cuts. At the same time, satisfaction is a key lever for integration into the labor market.
The study recommends greater consideration of benefit recipients who are distant from the labor market and increased efficiency in placement processes, particularly through digital administrative procedures.
On his 100th birthday, the Executive Board of IAW e.V. commemorates its long-standing Chairman (1979–2003) and Honorary Chairman (2003–2006). Norbert Kloten, president of the Landeszentralbank in Baden-Württemberg since 1976, took over as chairman of the board of the Gesellschaft für Angewandte Wirtschaftsforschung (GAW e.V.), the institute's supporting association, as successor to Prof. Dr. Otto Pfleiderer (also a former LZB president). Despite his many other commitments, he was an extremely active advisor, supporter, and shaper of the institute during these years. With the merger of the GAW and the IAW, new statutes, and a new committee structure in 2003, he shaped the platform for the future development of the institute. He also handed over the role of chairman to the next generation that same year, but remained loyal to the board not only as a member who embodied continuity and advice, but also as someone who remained involved in the details until his death in 2006.
“Legally equal – practically disadvantaged?” Under this title, the IAW, together with the Research Institute for Vocational Education and Training (fbb) and the SOKO Institute, analyzed the situation of EU immigrants in Germany.
The study (in German) was commissioned by the Federal Government Commissioner for Migration, Refugees, and Integration. It examines the reasons for the migration and emigration of EU citizens, analyzes key obstacles in everyday and working life despite formal equality, and derives starting points for better participation and fair working conditions.
The results of the study were presented on March 3, 2026, in the presence of Minister of State Natalie Pawlik at the EU Commission's representation in Berlin.
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.
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.
The IAW short report 2/2025 (in German) can be found here.
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.
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.
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.
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.
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.
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.
