Greening work: labor market policies for the environment

Jobs are essential for social inclusion, raising taxes, and guaranteeing the financial resilience of (welfare) states. At the same time, the Sustainable Development Goals, the Paris Agreement, and the European Green Deal require the greening of our economies and labor markets. This paper assesses how labor market policies can green employment. The paper analyses the potential effects of eight different policy strategies on four dimensions of the Taxonomy of Sustainable Employment: conversion of plants and businesses, environmental labor law, climate decommodification, socio-ecological job guarantee, vocational guidance and retraining, distribution of employment time, alternative income sources, and equalization of income. All eight strategies have the potential of greening employment but feature different intensities in the four dimensions. In the light of environmental crises, the results suggest widening the toolbox of labor market policies for a green and just transition.

Fiscal sustainability and low interest rates: what an indicator can(’t) tell

The indicator that is commonly used to assess the long-term fiscal sustainability of public finances in EU member states (“S2”) is also defined if government borrowing rates are assumed to be permanently lower than the growth rate of GDP. Under these circumstances, however, it no longer provides a reliable orientation for fiscal policy. I illustrate these findings based on simulations prepared for the Fifth Sustainability Report published by the German Federal Ministry of Finance. In addition, I discuss the interpretation of the indicator in a low-interest environment and the assumption that relevant interest rates may continue to be low if there are substantial challenges for fiscal sustainability, e.g., through demographic ageing.

Determinants of substantial public debt reductions in Central and Eastern European Countries

Government debt development is a timeless issue in economics that has gained even more attention in light of the global financial crisis and the Covid 19 pandemic crisis. The following paper uses several specifications of a logistic probability model to examine the key determinants underlying substantial public debt reductions in Central and Eastern European EU Member States for the period 1996–2020. The results suggest that fiscal adjustments are more likely to be successful in reducing public debt if they are based on expenditure cuts rather than revenue increases. In this context, cuts in social benefits and government employee compensation prove to be particularly effective. In addition, favourable economic growth rates increase the probability of a substantial reduction in government debt.

The economic development of regions in Ukraine: with tests on the territorial capital approach

The territorial capital approach is used to investigate the economic development of regions in Ukraine in an empirical model. In addition to ‘traditional’ models of regional development, potentially important variables for economic growth, such as elements of social and societal capital (e.g., trust, corruption, non-profit organizations, libraries), are included. Furthermore, the effects of the military conflicts in Ukraine on regional development are described. The empirical results suggest that—while there are no clear-cut effects of all elements of the territorial capital—some interesting variables are of significant importance for the regional development in Ukraine. For instance, strengthening the cultural and social, as well as institutional capital as parts of the overall governance structure, may have positive effects on regional development equal to those originating from hard infrastructure, such as roads and railroads. The results also indicate that—besides the devastating effects of the military conflicts—there is a range of options for public policies supporting territorial capital. These policies include the provision and implementation of robust legal frameworks to increase trust and to reduce corruption, the support of educational efforts and the institutions of civil society, and the promotion of local (i.e. municipal) investments in the framework of a foundational economy.