Russia-Ukraine War: A Note on Short-Run Production and Labour Market Effects of the Energy Crisis

Hutter, Christian and Weber, Enzo (2023): Russia-Ukraine War: A Note on Short-Run Production and Labour Market Effects of the Energy Crisis.

Abstract

We provide first causal evidence of effects of the energy crisis on Germany, representing a major European economy. Combining cost structure data, national accounts and administrative labour market data, we identify effects in a sectoral panel setting using sector-specific energy intensity as “bite” variable. The results show that via the channel of energy intensity, monthly production and real turnover decreased by 4.1 and 2.6 percent, respectively, after the onset of the Russian war against Ukraine. Instead of layoffs, firms safeguarded employment via short-time work with 24.1 percent additional applications. Vacancy posting was reduced by 10.2 percent.

• Item Type: MPRA Paper
• Language: English
• Keywords: Russia-Ukraine war; energy; production; labour market; Germany
• Subjects: E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E23 - Production; H - Public Economics > H5 - National Government Expenditures and Related Policies > H56 - National Security and War; J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers > J63 - Turnover ; Vacancies ; Layoffs; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q43 - Energy and the Macroeconomy

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