Dear reader,

We kick off the second half of the year with highlights in groundbreaking research on education and labor markets, as well as timely insights on global challenges and democracy. Our next event will offer a clear view of economic reality and the reforms needed to get Germany back on track.

Sincere regards,

Ernst Fehr, Director
Hans-Joachim Voth, Scientific Director

A magic bullet for school success?

A field study shows that just twelve hours of memory training for first graders increases the baccalaureate graduation rate by 15 percentage points. Behavioral economist Ernst Fehr explains whether curricula should be rewritten and what parents can do themselves.

Challenges in development economics

In this special edition of our Public Paper series, Dina Pomeranz discusses the most pressing issues in development economics: improving tax capacity in low- and middle-income countries and managing the impacts of climate change. Her work bridges academic research and policy, focusing on practical solutions that foster sustainable economic growth and help vulnerable nations adapt to climate change.

Research

Long-term unemployment: not just bad luck

Why do some people remain stuck in long-term unemployment while others quickly achieve re-employment? A new study by Andreas I. Mueller and his co-author – published in the Journal of Political Economy – sheds light on the predictability and hidden patterns of long-term unemployment.

Maite Deambrosi successfully defended her PhD Thesis

Maite’s dissertation combines lab and field experiments to uncover how misperceptions can lead to underinvestment in skills and to persistent gender inequality in marriage markets. Her research sheds light on how mistaken beliefs shape decisions in education, relationships, and health – and what this means for public policy. Maite will continue her academic path as a Postdoctoral Associate at the Central European University in Vienna.

Freedom could be stolen from us

Fear, once a tool of dictatorships, persists in new forms, says Nobel laureate Herta Müller. In the recent edition of our Nobel Opinions series, she discusses how corruption, authoritarian tendencies, and disillusionment have taken root in countries like Romania, Hungary, and Poland, while external threats like Putin’s regime continue to undermine democracy across Europe.