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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

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.

10th Bundesbank IAW Lecture with Dr. Joachim Nagel: Target Achieved But Challenges Remain

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.

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News from the IAW: IAW News 2/2025 online

  • What makes working in outpatient care attractive? New findings from a vignette study
  • Entry into vocational training even without a waiting loop
  • Germany in international tax competition - Prof. Clemens Fuest gives lecture at the IAW Annual General Meeting

IAW-News 2/2025 (in German)

Economic recovery - but with risks. The economic forecast for Baden-Württemberg for the 2nd quarter 2025.

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.

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IAW study shows: Temporary employment pay gap is closed

A recent IAW study commissioned by the Gesamtverband der Personaldienstleister e.V. (GVP) examines wage differences between employees in and outside of temporary work based on the 2023 earnings structure survey. This initially shows unadjusted wage gaps at the expense of temporary work - both in monthly earnings and in hourly pay. However, if a comparison is made between similar employees in and outside temporary employment, the difference in monthly wages is significantly smaller. In the case of hourly wages, there is no longer a wage gap when taking into account the different characteristics of employees in and outside temporary employment if the statistical twin method (matching) is used. When regression models are used, there is even an inverse wage gap in payment per hour in favor of temporary work.

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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