The role of uncertainty in the euro crisis – an application of liquidity preference theory

The world financial crisis triggered a rediscovery of the active role fiscal policy can play as a remedy in such situations. During the euro crisis, escalating funding costs in a number of southern eurozone member states and Ireland have called this strategy into question. One interpretation of the euro crisis concentrated on the public debt trends in those countries. Opposing this view, the main point of this contribution is to elaborate the link between rising interest rates on sovereign bonds in the euro crisis and a major feature of the financial crisis – a subdued degree of investor confidence after the Lehman collapse. Theoretically, this link is developed with reference to Keynes’ liquidity preference theory. The high explanatory power of measures for the degree of confidence in financial markets as well as detrimental effects of fiscal austerity on the evolution of sovereign yield spreads are demonstrated empirically by means of panel regressions and supplementary correlation analyses.     

Betriebliche Bündnisse sichern Beschäftigung

Wirtschaftsdienst - Zu den betrieblichen Bündnissen liefert dieser Beitrag einige empirische Ergebnisse aus einer repräsentativen Befragung von Betriebsräten. Dabei werden die...     

Positive Effekte des Mindestlohns auf Arbeitsplatzqualität und Arbeitszufriedenheit

Little is known regarding the effects of minimum wage adjustments on job quality and job satisfaction. Our investigation found that for minimum wage workers in continuing employment relationships, work satisfaction unequivocally increased relative to a control group following the introduction of the minimum wage in Germany. Possible reasons include improvements in objective jobs quality such as higher hourly and gross wages, and shorter work hours. However, changes in the organisation of work also appear to have played a role. We find indications for more motivation oriented personnel management and improved work atmosphere in existing minimum wage jobs. Combined with a better work life balance these aspects play a larger role in explaining increased job satisfaction than mere wage satisfaction.     

Bilanz des gesetzlichen Mindestlohns: deutliche Lohnerhöhungen,aber auch viele Umgehungen

Three years after the introduction of the minimum wage in 2015, the assessment of its labour market impact is positive. Contrary to early warnings, there has been no apparent decline in employment in most affected parts of the labour market. The share of the working poor who were eligible for drawing in-work benefits declined by 2.7 percentage points. Nevertheless, there still is a pressing problem of 2.2 million minimum wage violations. Those occur more often in establishments that do not have worker representation and are not covered by collective bargaining. Women and East Germans are also more often affected. Lost wages and social insurance contributions in 2016 were as high as €10 billion.