Age-Biased Technological and Organizational Change: Firm-Level Evidence and Management Implications

This paper examines the question, whether the growing use of new technologies and decentralized forms of work organization affects the age structure of workforces within firms. The initial idea behind this relationship is that technological and organizational change may not only be skill-biased, but also age-biased. Based on human capital theoretical explanations that mainly focus on skill obsolescence in association with the need to acquire new skills, the hypothesis of an age-biased technological and organizational change (ABTOC) is derived and tested econometrically using German firm-level data. The empirical results show that the adoption of technological and organizational innovations decreases the firms’ demand for older workers and increases the demand for younger workers. Hence, ABTOC is found to be at the expense of older workers. Since ABTOC does not fit to the current development in terms of age-specific labor supply, this paper also suggests human resource management practices that encourage firms to combine the use of new technologies and organizational forms with an ageing workforce.Ageing workforces, new technologies, decentralized work organization, skill obsolescence, skill adaptation, productivity-wage-differentials

Nonlinear Adjustment, Purchasing Power Parity and the Role of Nominal Exchange Rates and Prices

Although the literature on purchasing power parity (PPP) is rich in controversy, the relative contribution of prices and nominal exchange rates to real exchange rate movements which restore PPP disequilibria has rarely been put under any close scrutiny. Using monthly data from 1973:01 to 2009:12 from the USA, UK, Germany, France and Japan, this paper as a fi rst step applies a cointegrated VAR framework to test for stationary real exchange rates and linear adjustments in prices and nominal exchange rates. As a second step, ESTR error correction models are fi tted to test whether nonlinear error correctional behaviour characterizes the data. The results clearly indicate that the nominal exchange rate is responsible for the nonlinear mean reverting behaviour in real exchange rates and also mainly drives overall adjustment. Applying dynamic stochastic simulations based on the estimated models, this study also confi rms recent results that the half-life times of real exchange rate shocks are signifi cantly smaller than the consensus benchmark of three to fi ve years.Purchasing power parity; cointegration; nonlinear vector error correction

Monitor Sustainable Municipalities Report 2019 Key topic Circular Economy. Bertelsmann Stiftung Study 4 November 2019

At first sight, the concept for a recycling economy appears to be just the latest trend in the field of urban development, but in fact conversion to circular value creation also contains numerous oppor-tunities for the creation of long-term sustainable economic, social and environmental benefits for local communities. We have therefore chosen to look at this topic in this, our fourth, Monitor Report. Recycling Economy, Circular Value Creation and Cradle To Cradle are three concepts which – alt-hough each has a different main focus – basically all describe the same paradigm shift: away from a classic linear economy (“Take, Make, Use, Dispose”) towards a model based on restoration and regeneration. The recycling economy principle is actually anchored in the United Nations’ 17 Sustainable Devel-opment Goals, or SDGs. Goal 12 calls for sustainable consumption and sustainable production patterns. The recycling economy is also associated with a number of other sustainability goals, as it makes a significant contribution to their achievement. We are convinced that it is worth considering the applicability of the concept to local communities in Germany. What does transferring the recycling economy principle to local communities entail? How can towns be converted into “Recycling Cities”? Where are the obstacles and what potential is there? This Monitor Report is a first – it is the first bilingual version. With the kind permission of the Collab-orating Centre for Sustainable Consumption and Production (CSCP) in Wuppertal, we have issued their “Circular Economy Guidebook for Cities” in the original English with a German translation. We hope that, by looking at the bigger picture, we will also generate the impulse to consider how the topic can be adopted in (European) towns and cities, and what the resulting benefits could be. We are fully aware that a one-to-one transfer will not work. “One size fits all” does not apply to local communities. Although something that makes sense in Amsterdam, Copenhagen or Oslo may not necessarily work in towns, districts and local communities in Germany, it is definitely worth looking at how things are done in other countries. I would sincerely like to thank everyone who contributed to the creation of this Report, and especially the CSCP for its trust and invaluable cooperation. We hope you enjoy reading the Report, and look forward as always to your feedback and suggestions