Policy Advice &
Science Communication

Short Summary: 

• The study examines the effects of the Skilled Immigratio Act (Fachkräfteeinwanderungsgesetz, FEG) on labor migration using a novel approach that leverages differences in origin countries' migration potential. Findings show a significant positive impact of the FEG on labor migration from third countries, with no similar effect for non-employment migration categories.

• The FEG accounts for 10-70% of the increase in labor migration rates (per origin country population), depending on the migration potential of origin countries. At the median migration potential, the estimated absolute effect is 10,500 permits, or 31% of all employment-related residence permits issued in 2022, though this figure relies on strong assumptions and should be considered approximate.

• Despite the statistically significant increase, current labor migration levels remain insufficient to address long-term demographic challenges. Achieving this would require comprehensive reforms, such as reducing legal barriers and providing targeted support for integrating foreign workers.

Short Summary: 

• Since the introduction of the Skilled Immigration Act (Fachkräfteeinwanderungsgesetz, FEG) in 2020, the share of women and younger migrants among non-EU labor immigrants has increased. These workers have higher employment rates than German nationals and other immigrant groups, with female labor migrants significantly more likely to work full-time compared to German women.

• Despite the FEG, migrant workers face major challenges, including bureaucratic hurdles for visas and qualification recognition, difficulties in family immigration, and limited information about legal pathways, labor markets, and job search in Germany. Discrimination remains a concern, with 56% of working migrants reporting incidents, particularly in the housing market.

• Co-nationals in Germany serve as key sources of information for potential migrants, meaning negative experiences can harm Germany’s reputation as a labor migration destination. Future policies should focus on reducing information gaps and offering better support for migrating families.

The Competition:
The “Young Economic Solutions” competition invites students to propose innovative solutions to current economic issues. Students develop practical ideas with guidance from researchers in their chosen topics. Their projects compete in a national contest, judged by peers and a jury of experts.

Team Topic: “Digitalization of the Workplace - Curse or Blessing?”
Digitalization is transforming work through AI and automation, reducing repetitive tasks and increasing flexibility. However, it also raises concerns like job loss, inequality, and work-life balance challenges. Key questions include: How can overburdening be minimized? Who benefits from remote work? What roles do employers and governments play in supporting workers? A balanced approach is crucial for ensuring digital advances lead to equitable and sustainable outcomes.

Drawing on their homeschooling experiences during the COVID-19 pandemic, the team focused on social isolation and techno-stress linked to remote work. They designed an app to promote worker interaction and social connection. Although they didn’t reach the finals, their dedication and innovative ideas were commendable.

Short summary: In this article we present the most important developments in the German labor market over the last three decades. The first part shows how employment and wage inequality have developed. In the second part, the most important factors influencing these changes in the labor market are discussed. On the one hand, there are changes in labor supply, such as the participation of women and immigration, but also changes in demand for labor as a consequence of globalization and digitalization. 

The article aims at teachers and school students and comes with teaching materials for further discussion in class.

Recommendations on how to empower young scholars to communicate research, developed during the International Summer School “Communicating Science” (ISSCS 2021) and handed over to the Federal Ministry of Education and Research

Short Summary:
This expert brief summarizes two prior studies on the psychosocial consequences of unemployment that were carried out at ZEW. These studies highlight the importance of employment for well-being and social integration and stress the need for effective policies to mitigate the social consequences of the COVID-19 pandemic.

‘Social Integration in the Labour Market’ (Bundesprogramm 'Soziale Teilhabe am Arbeitsmarkt', BuProST), see entry below for summary of main results.

Short summary:
‘Social Integration in the Labour Market’ (Bundesprogramm 'Soziale Teilhabe am Arbeitsmarkt', BuProST) was a pilot program offering publicly subsidized jobs to long-term unemployed individuals with very low prospects in the regular labor market. Its primary goal was to enhance social integration, while facilitating transitions to non-subsidized employment was a secondary goal.

For the evaluation, a survey of participants was linked to their administrative social security records. The results show that BuProST significantly improved participants' social integration and well-being during the participation phase.

To avoid displacing regular jobs and to minimize lock-in effects, future programs should target individuals with the lowest employment prospects and continuously monitor employability improvements. For effective social integration such programs should provide tailored jobs and support measures like training and coaching.

Short Summary:
In Germany, the number of self-employed individuals exceeds four million, driven largely by solo self-employed workers. This report compiles data to provide an overview of self-employment in Germany, detailing socio-demographic characteristics and examining trends among new entrants and those remaining self-employed. It analyzes the income situation of self-employed individuals, providing insights into their financial and social security status and noting that the majority lack compulsory old-age insurance. The report also studies labor supply, income structure, household situations, and asset ownership.