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The digital transformation is opening up new ways of working, collaborating and shaping the future – whether through remote work, AI-supported processes or virtual teams. This offers opportunities for more flexibility and efficiency but also presents great challenges for both businesses and employees. Defining how the world of work should be shaped and organised in the future is increasingly becoming a key societal and economic issue.
The current issue of ZEW Monthly, focusing on the theme “Work in the Digital Age”, highlights how technological developments are affecting employment, productivity and wages. ZEW research shows that employees often perceive AI as a supporting tool, yet many companies fall short of expectations when it comes to implementation. Women working as independent contractors on online platforms tend to earn less per hour than men – not due to discrimination, but because they use platforms differently. The use of robots also brings consequences: It is often associated with job losses, although works councils try to counteract this development.
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| | | RESEARCH ON WORK IN THE DIGITAL AGE |
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↗ EMPLOYEES USE AI – EVEN WITHOUT FORMAL INTRODUCTION BY THEIR EMPLOYERS
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| In Germany, more than half of employees are already using artificial intelligence (AI) in the workplace – yet most AI applications are not introduced by employers but are used informally. This shows, on the one hand, that employees perceive AI as a form of support and, on the other hand, that firms are lagging behind with AI adoption and do not meet workers’ expectations regarding both the actual and the desired use of this technology. This is the conclusion of the report on the “Digital Transformation and the Changing World of Work (DiWaBe 2.0)” survey. ZEW economist Dr. Eduard Brüll is among the contributors to the report, which was compiled on behalf of the Federal Ministry of Labour and Social Affairs (BMAS).
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↗ WHY WOMEN EARN LESS IN THE GIG ECONOMY
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| The wage gap between men and women is a controversial topic in the debate about women’s disadvantages in the labour market. Gender wage gaps also exist in the so-called gig economy, where digital platforms are used to assign small-scale jobs on a short-term basis to workers who operate as independent contractors. A study by ZEW economist Eliza Stenzhorn shows that women earn around 30 per cent less per hour from online freelancing than men. However, this is not because of gender-based discrimination against women by clients. The reason is that men and women act differently on the platforms and have different expectations of the contracts, and this leads to income gaps.
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↗ TECHNOLOGISATION: COMPANIES CAN BENEFIT FROM WORKS COUNCILS
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| Introducing robots in a company often goes hand in hand with job cuts – works councils prevent this. These are the findings of a study by ZEW economist Oliver Schlenker. Older employees aged 55 and above, who have poorer employment prospects on the labor market, benefit in particular from higher retention despite automation. However, there are also advantages for the companies themselves. In plants with a works council, productivity gains in the wake of automation are larger than in those without shop-floor worker representation. The ZEW study is based on survey and social insurance data from the Institute for Employment Research (IAB) in Nuremberg and covers around 18,000 employees and their establishments.
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| | ↗ GENERATIVE AI REACHES THE BOARD ROOM
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| The majority of CEOs in the information economy and manufacturing industry have already personally used generative artificial intelligence (AI). Their own experiences with generative AI influence how optimistic decision-makers are about its potential for productivity. These are the findings of a representative ZEW survey among around 1,200 companies in Germany’s information economy and manufacturing industry. It is primarily corporate executives who participate in the survey.
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↗ WHAT PRIVATE INVESTORS NEED FOR THE GREEN TRANSITION
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| How can private capital be mobilised for the green transition? This was the central question posed at the ZEW Lunch Debate in Brussels on 18 March 2025. Chaired by ZEW economists Professor Tabea Bucher-Koenen and Professor Karolin Kirschenmann, a panel explored the drivers and barriers for private and institutional investors to engage in financing the green economy and discussed regulatory frameworks for capital markets. The ZEW economists published a policy brief to accompany the event in which they argue that the most promising ways for institutional investors to achieve a climate impact are through engagement and by integrating sustainability into investment decisions.
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↗ TRUMP’S POLICY IS A REASON FOR GROWING CONCERNS AMONG BUSINESSES
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| An increasing number of companies in Germany fear that the presidency by Donald Trump will have a negative impact on the German economy. This is a finding of a recent representative survey conducted by ZEW Mannheim researchers from mid-March to mid-April. Around 800 Germany-based companies in the information economy and manufacturing sector participated in the survey. “Over 80 per cent of these companies expect the presidency by Donald Trump to have a negative impact on the performance of the German economy,” comments ZEW economist Dr. Daniel Erdsiek, who led the survey.
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↗ TENTH FAMILY REPORT: ZEW ECONOMIST CONTRIBUTES EXPERTISE
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| The Tenth Family Report was presented to Lisa Paus, Federal Minister for Family Affairs, Senior Citizens, Women and Youth, on 15 January 2025. It sheds light on the situation of families in Germany with a particular focus on single parents and separated parents. “We need sound scientific analysis as a basis for developing policy recommendations that are really effective and that make family policy fit for the future," emphasises ZEW economist Professor Holger Stichnoth, who has been a member of the Family Report Expert Commission since 2023.
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A targeted economic policy strategy is required to safeguard Europe’s sovereignty. In their article, Professor Hanna Hottenrott, head of the ZEW Research Unit “Economics of Innovation and Industrial Dynamics” and ZEW President Professor Achim Wambach, PhD write about the need for the EU to reinforce its innovative strength, reduce strategic dependencies on raw materials and build more resilient supply chains.
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| Read the full opinion piece
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| | REVIEW
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| ↗ FIRST-HAND INFORMATION ON ECONOMIC POLICY
Nobel Laureate Joshua Angrist Debunks the Elite Illusion
Elite schools and universities have a magical attraction for many people. Strong networks, excellent teachers, supposedly better career opportunities and a high reputation are the reasons why many young people compete for the few, coveted places. But does attending an elite institution really get your further in life? This question was discussed by Joshua Angrist, Nobel Laureate in Economics and Ford Professor of Economics at the Massachusetts Institute of Technology (MIT), and ZEW President Professor Achim Wambach, PhD at a talk on 27 March 2025, which was part of ZEW’s “First-Hand Information on Economic Policy” event series.
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| | | | → CONTACT FOR QUESTIONS OR SUGGESTIONS ON THE CONTENT | |
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| | | | | ZEW – Leibniz Centre for European Economic Research
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Phone: +49 (0)621/1235-01
E-mail: zewmonthly@zew.de
Website: www.zew.de
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