Press releases

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Deutscher Sozialstaat federt mehr als die Hälfte an Einkommensverlusten in Wirtschaftskrisen ab

In Deutschland federt der Sozialstaat im Falle eines starken Anstiegs der Arbeitslosigkeit zwischen 53 und 63 Prozent aller Einkommensverluste ab. Das geht aus einer EconPol-Studie hervor, die soziale Sicherungssysteme in der EU untersucht. „Die Sozialsysteme in Skandinavien und Westeuropa puffern Einkommensverluste ihrer Bürgerinnen und Bürger besonders umfassend ab.

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British Welfare State Cushions About 36 Percent of Income Losses in Economic Crises

In the event of a sharp rise in unemployment in the United Kingdom, the welfare state cushions between 36 and 37 percent of all income losses. This is the result of an EconPol study that examines social security systems in the EU. “The social security systems in Scandinavia and Western Europe buffer their citizens’ income losses most comprehensively.

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Many European Economists Take a Critical View of US Law to Curb Inflation

Economic experts in major European countries are particularly critical of the US Inflation Reduction Act (IRA). This is the finding of a global survey carried out by the ifo Institute in collaboration with the Swiss Economic Policy Institute. “Misgivings are especially grave in Germany and France. Economists in the UK, Ireland, Italy, Switzerland, Austria, and Belgium are also skeptical. But their colleagues outside Europe are far more relaxed about the effects of the IRA.

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Economic Sanctions Generate High Costs, Especially for Target Countries’ Poorer Populations

Economic sanctions induce considerable economic damage in the target countries. Sanctions by the United Nations cause growth in sanctioned countries to decline by 2 percentage points annually. Extrapolated over ten years, this is equivalent to a 25 percent drop in per capita economic output. Unilateral sanctions by the US lead to an annual decline in growth of almost 1 percentage point in the countries affected. In the long term, this corresponds to a 13 percent slump in the economy’s output per capita.

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Better Science Teachers Mean Better Student Performance

Schoolchildren achieve better science grades when their teacher has specialist training in the subject they teach. This has been shown in an evaluation of international student data by Pietro Sancassani of the ifo Center for the Economics of Education. Germany was not included in the study because all science teachers there already have specialist training. Around one-fifth of the effect qualified teachers have on student performance can be ascribed to the fact that teachers feel more confident delivering the course material.

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