Labour Market Processes and Institutions
Research Department A1
The research department analyses the processes behind the macroeconomic labour market development, e. g. wage setting, labour market dynamics, search for personnel, labour market matching and labour supply decisions. We also investigate the labour market effects of institutions such as payroll taxes, the system of collective bargaining and unemployment benefits.
With the IAB Macroeconomic Job Vacancy Survey (EGS), the research department has available unique representative information on the number and structure of vacancies and the hiring process. For example, we analyse current and expected demand for skilled labour according to sectors, regions and qualifications as well as labour market tightness. In addition, the survey is dedicated to firms’ assessments of current labour market policy topics such as job prospects of long-term unemployed and the use of one-euro jobs.
Further issues on the research agenda are: What effects do changes in taxes or unemployment benefits have on equilibrium employment? What is the effect of institutional changes (such as the Hartz reforms) or economic shocks on the job and worker flows? What is the development of wages in long-term perspective and during the business cycle?
The department is characterized by researching mainly macroeconomic problems based on micro-founded methodology, which comprises microeconometrics, microsimulation and survey methods.
Projects of department