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.
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.
The Tübingen-Hohenheim Economics (THE) association invites you to this year's THE workshop in combination with a mini-course on “Causal Machine Learning.”
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.
Photo: © Sebastian Berger, Deutsche Bundesbank
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 full text of his speech is available on the Deutsche Bundesbank website.
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.
