Still good labor market development leads to further decline in shadow economy in 2019 (in German).
In 2019, the size of the shadow economy in Germany will decrease by around EUR 5 billion. The ratio of the shadow economy to official GDP will thus fall to just over 9 percent. The main reason for this is the continuing good labor market situation, which so far has not been affected by the weaker growth outlook. In addition, lower taxes for the small self-employed make it more worthwhile to register a business.
Press release January 17, 2019
Baden-Württemberg - Close integration of the industrial and service sectors brings location advantages in digitization (in German).
A recent study by the Institute for Applied Economic Research (IAW), the Fraunhofer Institute for Systems and Innovation Research ISI and the ZEW - Leibniz Centre for European Economic Research shows that industry-related services in Baden-Württemberg are very strong in innovation. They ensure that SMEs in particular are better able to exploit the opportunities of digitization and increasingly offer digital hybrid services. However, the study also points out that in industry, only some of the companies are benefiting from the service business, while others are withdrawing from it in whole or in part.
Press release June 27, 2018
Companies use many levers to absorb cost increases resulting from the minimum wage (in German).
A general statutory minimum wage was introduced in Germany at the beginning of 2015. On behalf of the Minimum Wage Commission, the IAW has now conducted a comprehensive qualitative study in industries that were heavily affected by the minimum wage to investigate the reactions of companies and employees to the minimum wage. The study showed that companies use a wide range of adaptation strategies to respond to the changes resulting from the introduction of the minimum wage.
Press release February 6, 2018
Good economic situation and positive employment trend lead to further decline in shadow economy in 2018 (in German).
Due to the good economic situation and increasing reported employment, the longer-term decline in the shadow economy continues unabated in 2018. The ratio of the shadow economy to the official economy is thus reduced to below 10%. The volume of the shadow economy in Germany is estimated at EUR 323 billion in 2018. However, the future German government could reduce the shadow economy even further through tax relief. For example, the complete abolition of the solidarity surcharge would reduce the shadow economy by over EUR 10 billion.
Press release September 21, 2017
60 Years IAW - Ceremony and Conference.
Press release February 16, 2017
Tapping skilled labor potential for companies - New IAW study on the role of skilled labor networks (in German).
Press release February 7, 2017
Sustained positive employment situation and tax relief lead to further decline in shadow economy (in German).
Press release April 7, 2016
Handicrafts Amendment Act 2004: Expectations only partially fulfilled - but fears do not materialize either (in German).
