In early November, the Federal Statistical Office reported a new record in the job market: By September 2023, employment in Germany surpassed the 46 million mark for the first time. Considering the multiple geopolitical crises and economic downturn, this is indeed encouraging news. However, despite the fact that employment has peaked, unemployment remains an important issue, with 2.6 million people currently looking for work.   Against this backdrop, our ZEW Monthly November 2023 edition will focus on “Labour Markets”. Besides highlighting the consequences of unemployment, it also examines other challenges and opportunities for individuals in the job market. ZEW researchers shed light on how the loss of a parent’s job affects their children’s education and why so few people opt for disability insurance. The newsletter also addresses the role of the job market in the integration of refugees and explores how technological change may reduce the influence of one’s social background on career success. RESEARCH ON LABOUR MARKETS ↗ PARENTS’ JOB LOSS LOWERS CHILDREN’S EDUCATIONAL OPPORTUNITIES    If the (mostly male) primary breadwinner loses their job, this increases the likelihood of their partner entering a less favourable employment situation and their children dropping out of school. This is revealed in a study conducted by ZEW in collaboration with the Center for Distributive, Labor, and Social Studies (CEDLAS) at the University of La Plata. The study, based on longitudinal data from 19,000 households in Argentina spanning from 1995 to 2015, is set to be published in the World Bank Economic Review. Targeted education and social policies could help to prevent educational dropouts.   More about the study   ↗ TECHNOLOGICAL CHANGES PROMOTED EQUAL OPPORTUNITIES IN THE LABOUR MARKET    The ZEW study “Computers as Stepping Stones? Technological Change and Equality of Labor Market Opportunities” was recently published in the renowned Journal of Labor Economics (JOLE). The study shows that with increasing digitalisation in Germany, the importance of one’s social background for professional success has diminished. In the 1990s, the growing computerisation of the work environment made it easier for employees whose parents did not have a German high school diploma (“Abitur”) to access jobs that were subject to major technological change. Moreover, their wages in these occupations converged with those of workers whose parents did have a high school diploma.   Click to access the full paper   Further information in the ZEW press release     ↗ HARDLY ANY INCENTIVES FOR PRIVATE INSURANCE AGAINST OCCUPATIONAL DISABILITY    Less than half of Germany's workforce currently opts for private occupational disability insurance. Interestingly, those at lower risk of work incapacity are most likely to take out insurance, while sick and financially strained employees exhibit the lowest coverage rates. This is the result of an empirical study conducted by ZEW researchers. They also suggest ways of boosting incentives to take out private occupational disability insurance, e.g. through state regulation of commission fees.   Click to access the full paper   ↗ REFUGEES CAUSE ONLY SLIGHT INCREASE IN CRIME    In the wake of the significant inflow of refugees to Germany in the years 2015 and 2016, refugees, after an initial welcoming phase, were increasingly associated with crime in public discourse and the media. Researchers from ZEW investigated whether crime rates in districts receiving refugees actually went up, using an annual panel. The study reveals that crime rates did indeed rise, but only slightly and with a certain time lag.   More about the study AT A GLANCE ↗ YOUTH PROTECTION PROVES EFFECTIVE FOR E-CIGARETTES    E-cigarettes contain fewer harmful substances than traditional cigarettes, but are still harmful to health. As a result, their sale has been regulated in many countries. However, as youth protection can be easily circumvented, debates about its effectiveness continue. A recent study by Professor Nicolas Ziebarth from ZEW Mannheim, based on longitudinal data from the National Institute on Drug Abuse in the USA, demonstrates that youth protection is indeed effective. More about the ZEW study CURRENT ZEW TOPICS ↗ OUTSTANDING RESULTS FOR ZEW MANNHEIM    ZEW Mannheim has received top marks from the Leibniz Association in terms of the quality of its research, policy advice, and transfer activities. The external evaluators awarded the highest rating of “excellent” to five of ZEW’s eight research units, and the rating of “very good to excellent” to three, attesting to “ZEW’s outstanding performance”. On the basis of this result, the Leibniz Association has decided to recommend ZEW for further federal and state funding.   Find out more   ↗ SHORTAGE OF SKILLED WORKERS THREATENS INNOVATION CAPACITY     Companies affected by the shortage of skilled workers are finding it increasingly difficult to carry out innovative projects due to the lack of expertise and capacity, resulting in a loss of innovation strength. To mitigate the repercussions of unfilled positions, companies are increasingly turning to innovation partnerships. This is the conclusion of a joint study conducted by researchers from ZEW and KU Leuven, based on data from the Mannheim Innovation Panel, which has been collected annually since 1993 following a standardised European methodology.   More about the study   ↗ WHAT DOES THE FUTURE OF WORK LOOK LIKE?    The labour market is grappling with significant challenges including migration, demographic change, the repercussions of the COVID-19 pandemic, and the shift towards a more sustainable economy. These factors collectively shape the future of work. In order to promote thorough research in this field and to support young researchers, ZEW and the Volksbank Kurpfalz Stiftung are presenting the “Future World of Work” research award for the eleventh time. Submissions can be made at the Volksbank Kurpfalz Foundation until 31 December 2023, for theses completed at a university or a non-university research institution, preferably in the Rhine-Neckar metropolitan region.   Apply now! Further information and submission criteria   ↗ MAKING SCHOOL PLACE ALLOCATION MORE EFFICIENT AND EQUITABLE    Algorithms are employed in Germany to allocate children and teenagers to schools. However, the mechanisms commonly used so far perform poorly in terms of efficiency and equality, as demonstrated by a study conducted by researchers from ZEW and Queen’s University Belfast. An approach that prioritises the preferences of parents and students proves to be far more effective for allocating school places to students.   More about the study ↗ “USE, DON´T CURTAIL” CANNOT REPLACE REGIONAL PRICING   The government is considering selling wind and solar energy to local consumers at reduced prices at times when power plants have to be turned off due to grid congestion. It would be better for Germany to bank on regional energy prices, as this would circumvent the inefficiency of the “Use, Don’t Curtail” system. Such is the point of view of ZEW’s Marion Ott and Achim Wambach.   Read the full opinion piece EVENTS ↗ ZEW CONFERENCE ZEW HOSTS FIFTH INTERNATIONAL CONFERENCE ON THE DYNAMICS OF ENTREPRENEURSHIP     On 12 and 13 October 2023, the ZEW Research Unit “Economics of Innovation and Industrial Dynamics”, in collaboration with the Mannheim Centre for Competition and Innovation (MaCCI), hosted the fifth international conference on the “Dynamics of Entrepreneurship” (CoDE) in Mannheim. A total of 39 international scholars presented and discussed their latest research findings. Four international keynote speakers and four panellists provided exciting insights. The conference, organised under the guidance of Professor Hanna Hottenrott, is among the most important academic gatherings in the fields of entrepreneurship and business dynamics. This is evident from the submission of over 120 scientific papers and the registration of around 90 participants for this year’s edition.   Read the full event report UPCOMING ↗ WORKSHOP DISCLOSURE, INFORMATION SHARING, AND SECRECY (DISS)    On 26 and 27 February 2024, join us for an online workshop on the economics of disclosure, information sharing, and secrecy. This event will feature discussions on both theoretical and empirical contributions on all aspects of information disclosure (or non-disclosure) in economics, accounting, management science, and related disciplines.   More about the event → CONTACT FOR QUESTIONS OR SUGGESTIONS ON THE CONTENT Dr. Frank Herkenhoff | frank.herkenhoff@zew.de EDITORIAL TEAM   Yvonne Bräutigam // CvD   Simone Mann // Design   Bastian Thüne // Press Officer     Funded by:     ZEW – Leibniz Centre for European Economic Research L7, 1 · 68161 Mannheim Phone: +49 (0)621/1235-01 E-mail: zewmonthly@zew.de Website: www.zew.de   Executive Directors: Professor Achim Wambach, PhD; Thomas Kohl Chair of the ZEW Supervisory Board: Ministerial Director Dr. Hans Reiter Registered Office: Mannheim Local Court Mannheim HRB 6554 USt-IdNr.: DE188318292   Commitment to Data Protection   Detailed Legal Note   Notification on the General Data Protection Regulation (GDPR)   Unsubscribe from ZEW Monthly