Auswirkungen des demografischen Wandels auf die Beschäftigungsquote von Ländern (German Edition)

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Studies show When stressing the role of the employer with that, irrespective of country, two organisational respect to reconciliation policies it should be taken characteristics are related to the presence of poli- into account that employers may pass on the actu- cies: sector and size. The extent to which this happens depends often than private companies. Work-family on the type of policy as well as the actual use and arrangements are also more common in large is likely to increase if the role of the employer is firms.

Large firms are more visible and may there- more pronounced. This calls for a delicate division fore be more responsive to institutional pressure. According to this argument, firms implement work-family arrangements when the benefits out- Within Europe, the level and nature of work-family weigh the costs. There may be a large variety of policies differ considerably, with every country hav- costs and benefits: savings from reduced recruit- ing its own unique constellation of childcare servic- ment, absenteeism, sickness, savings from es, leave facilities, flexible working-time arrange- increased retention, morale and productivity, an ments and financial allowances.

Parental leave does not always favour gen- of knowledge workers to competitors. Potential der equality, however. In order to promote a more costs relate to yearly costs of the policy multiplied equal use of leave facilities, special attention should by the number of workers benefiting per year , dis- be given to the design of the arrangements. This ruption costs of arranging temporary cover for refers to both the duration of the leave, the level of absent colleagues, temporary reduction in produc- payment and the flexibility in take-up.

Other flexi- tivity from disruption and potential loss of morale ble work arrangements, although an important part for employees who do not personally benefit from of reconciliation policy, are not always designed the policies. The specific cost-benefit analysis will with the intention of benefiting employees with vary with organisational characteristics. For exam- young children. It is likely that the negative female labour force participation. Using the per- impact on employees will be minimalised if the role spective of a child's life course and linking childcare, of employers in reconciliation policy is not too pro- education, and leisure activities, while at the same nounced and if most costs are paid collectively.

Il existe pourtant un rapport positif demande. En revanche, si les collectives de garde. La participation des hommes ne les mesures de conciliation. Les don- mois au Liechtenstein. Dans plusieurs pays les employeurs offrent la qui ne s'adressent qu'aux seuls parents. Le commerciaux. Les politiques sociales parents qui ont de jeunes enfants. Am unteren Ende des Rankings sehen wir zen. Dabei ist diese Studie — veau. Es ist schneiden dagegen recht schwach ab. Die Schweden und Island ist die Kinderbetreuung als Auswirkungen einer auf die Vereinbarkeit von Sozialanspruch ausgestaltet.

Auf Basis der vorliegenden Zahlen ist kein ein- nisse beseitigen sollten, die der Teilnahme von heitlicher Trend hinsichtlich des Angebots an Kin- Frauen am Arbeitsmarkt entgegenstehen. Unter derbetreuungseinrichtungen festzustellen. Die Eltern zahlen eine ein- der unter drei erreicht haben. In der gegensteht. Europaweit reichen die Einstellungen von drei Monate. Die Zahlungen reichen von mellen Betreuungsarrangements vorgezogen.

Nimmt ein Elter- der Privatwirtschaft. Insbesondere in den zehn neuen Mit- det. Es scheint, dass es bei der Inanspruchnahme und -abwicklungen geschlossen. Die Finanzierung wird daher auf alle fast allen in Anspruch genommen. Aus Spanien, drei Seiten verteilt: Auf Makroebene zahlen Arbeit- Frankreich und den Niederlanden wird eine mittlere geber, Arbeitnehmer und der Staat jeweils etwa Inanspruchnahme gemeldet.

Insbesondere solange die Kinder klein sind, schen Inanspruchnahme und Bildungsstand. Frauen festzustellen sind. Zum Vereinbaren von Arbeit und Familie gestattet. Im Allge- ten. Die jeweils wenig Bedeutung zugemessen wird. In Deutschland bieten Arbeitszeitmodelle entwickelt oder sind dabei, sol- zum Beispiel die meisten Firmen einen Vater- che zu entwickeln , die die Vereinbarkeit von schaftsurlaub an.

Dieser Ansatz sieht vor, die verschiedenen Arbeitgeber beim Angebot von Elternurlaub eine Zeiten innerhalb eines geografischen Bereichs auf wichtige Rolle zu spielen. Lebensphasen zu kombinieren. Anders als bei der Teilzeitarbeit steigt der Anteil Einbeziehung der Arbeitgeber: der Telearbeit mit dem Bildungsstand.

In anderen spielen. Arbeit und Familienleben der Arbeitnehmer beizu- tragen. Es scheint, chen Inanspruchnahme derselben ab. Die optimale Arbeitgebers ist. Elternurlaub wirkt sich jedoch nicht immer daher wichtig werden, Arbeits- und Familienpolitik zugunsten der Geschlechtergleichstellung aus. Fragmentierung und schlecht aufeinander Gestaltung dieser Regelungen geachtet werden. The increasing labour market participation of information is gathered on a wide range of women, changing family forms and the demo- policies for 30 countries.

Another innovative aspect of this report is that ily one of the major topics of the European the focus is not only on national, public strate- social agenda. Yet, countries differ in their pol- gies. Where possible, we go beyond the icy responses, sometimes stressing the need national level, to investigate complementary for more flexible working hours, sometimes provisions emerging at sector or company encouraging the supply of public and private level.

This is not an easy task. National provi- services and sometimes focussing on a more sions are already rather fragmented and highly equal distribution of paid and unpaid work. The diverse. Nevertheless, it is important to have improved opportunities to work part- include measures at a more decentralised level, time. In fact, it is at paternity leave schemes.

Childcare is a policy the organisational level where the details of the priority in practically all Member States, even reconciliation of work and family life are though the approach varies in focus and ambi- worked out. As such, the organisational level is tion JER , This report contains an overview of policies tar- participation and fertility. In addition, a focus geted towards the reconciliation agenda of the on the employer may serve strategic policy 25 EU Member States. In addition, the report purposes, because in a time of tight public contains information from three EEA countries, budgets, the employer may become an impor- Iceland, Norway and Liechtenstein, and two tant ally of gender equality.

Candidate countries, Bulgaria and Romania. Reconciliation policies can be defined as poli- 4. The structure of the report is as follows. Firstly, cies that directly support the combination of in Chapter 1 we give an overview of the partic- professional, family and private life. In effect, ipation and fertility rates in Europe and the way this means that this report will contain an these are affected by reconciliation policies. National reconciliation policies have been allowances. An innovative ele- state, the employer and the employee parent.

Patterns of participation and fertility 5. Within the framework of the European Employ- 6. Graph 1 gives an overview of the total employ- ment Strategy, Member States are committed ment rate of all the EU Member States in , to fostering the three overarching and interre- including the five non-EU neighbouring coun- lated objectives of full employment, quality tries.

The difference between the lowest and and productivity at work, social cohesion and highest ranking country is more than 30 per- inclusion. During the last appears that the EU Member States Denmark, couple of years, employment growth has been the Netherlands, Sweden and the United King- quite moderate, however. At the lower end spectacular acceleration in employment of the ranking we see Hungary, Italy, Malta, Bul- growth, the target will also be missed garia and Poland. The employment rate for women continues to improve, but progress has 7. Graph 2 gives the employment rate for women, slowed down.

Patterns of participation and fertility Graph 2. Ger- enstein not available. At the bottom of the ranking, it appears that 9. The Lisbon target — and the employment data especially Spain, Poland, Greece, Italy and so far — are based on a headcount. Differences Malta are considerably far from the Lisbon tar- in working hours are, therefore, not taken into get. Given the fact that more women than men work on a part-time basis, the employ- Gender gap ment gap may, in fact, be underestimated. Graph 4 addresses this issue by measuring the 8. The difference between total and female gender gap in full-time equivalents FTEs.

According measuring in full-time equivalent. Member States should therefore reinforce equivalents than in headcount. The Dutch gen- action to close all gender gaps and set ambi- der gap, for example, increases from Graph 3 ranks all when calculated in headcount to The employ- The fact of the matter is that parenthood plays ment gap appears to be particularly large in the a different role in the labour market behaviour southern EU Member States like Malta, of men and women. As Czech Republic and Hungary to 3 percentage seen in Graph 5, in most cases, having a child points in Denmark, minus 2 in Portugal and has a different impact on men and women.

In minus 8 in Slovenia data for Sweden, Ireland general, women without children are much and for the five non-EU neighbouring countries more employed than women with children. The not available. Interestingly, Graph 5 also points opposite is true for men. Men without children out that parenthood has a higher impact in the have a lower rate of employment than men New Member States then in the EU The with children. For ed by parenthood. Patterns of participation and fertility Graph 5.

In Portugal and Slovenia, for example, both men and women Over the last decades, female employment are more employed after having children. Apart from demographic data like the number level beneath the replacement rate in all Euro- of children and the proportion of married pean countries. At first sight, these contrary women, major determinants of female partici- developments do not seem difficult to explain.

Over and above this, and the concomitant desire to build up a pro- national policies may also influence the partici- fessional career increases the opportunity costs pation rate.

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A well-known example is the fiscal of childbearing and lowers the average number treatment of secondary earners; women are of children. This standard economic argument more sensitive to reductions in their net wage cannot explain, however, the reversal of the tra- because they have the option of home produc- ditionally negative correlation between fertility tion, which is not taxed. Another important pol- and participation rates. Countries with high icy determinant is family support like childcare participation rates such as Iceland, Norway, subsidies and paid parental leave.

A recent Denmark and Sweden experienced a conver- study by the OECD Jaumotte indicates gence of fertility rates towards a level just that countries with paid parental leave and below replacement rates, while in countries childcare subsidies have higher participation with low participation Poland, Greece fertility rates compared to the OECD average. More- has approached the unity level. The availability of part-time Graph 6 gives some empirical evidence of the work is also positively related to the participa- fertility rates of European countries in These outcomes provide a further Despite national differences, the total fertility justification for the current study on policies rates in all European Member States are now targeted towards the reconciliation of work and below replacement level, as 2.

On average the EU had a total fertility of 1. In those same lower levels of fertility than the EU, which countries female participation is relatively low, score slightly below 1. The low fertility level part-time work is uncommon, the size of the and the fast decline over the last decade of public sector is moderate and labour contracts the New Member States may be related to for young workers are unstable.

The combina- many of the changes that these countries have tion of these institutional features has a strong undergone over the last ten years. The importance of the institutional setting is fur- ception may have all played a role in the declin- ther underlined by Sleebos , who distin- ing fertility rates Eurostat ; Sleebos On the one hand she considers direct policies, She distinguishes three but may indirectly influence fertility rates such stylised equilibria. Sleebos emphasises that most reconcil- maternity benefits conditional on employment iation policies are expensive and evidence on guarantee a high level of female participation their effectiveness is often contradictory.

Still, it and keep the fertility rate barely below replace- seems countries in which family cash benefits ment rate. Second in highly flexible markets, are present tend to show higher fertility rates, such as the United States, women leave the although in most cases the effects are only labour force knowing that they will be very like- weak. The same holds for the effects of tax poli- ly to regain employment at re-entry. In those cies, although in the United States and Canada countries, fertility rates are among the highest positive effects are more obvious.

The effects of in the OECD. Finally, in a third group of coun- family-friendly policies are quite conflicting. Fertility rates 3. In southern parental leave are less clear. Findings vary from European countries where maternity benefits no effect to a small positive effect of the pay- are more moderate the incentive to postpone ment level and duration of maternity and motherhood is much weaker.

In a multivariate parental leave. In conclusion, Sleebos under- study, it appears that unemployment has the lines that a combination of several reconciliation strongest negative effect on the timing of births. Nordic countries and France in particular. Reconciliation policies may also affect the timing ipation in the labour market is moderate, part- of births. Graph 7 includes the age of the moth- time availability can lead to an acceleration of er at the moment she gave birth to her first child second and third births.

In , British and Spanish women The low level of fertility and the declining popu- gave birth to their first child at an average age of lation in much of Europe has become a key Although information is missing for five force. By the working age population countries both in and , it is obvious could be reduced to million for the EU25 that, compared to , in women started compared with the current million.

This childbearing later in life. Especially in countries with generous com- , This has implications for growth pensations during maternity leave such as Fin- potential and for the sustainability of pensions land and Sweden women may postpone moth- and benefits.

Promoting active ageing, but also erhood to increase those maternity benefits. In this context, having their first child to ensure a higher income a focus on childcare and other facilities to recon- at the time of withdrawal, but once they start cile work and family is vital. Graph 7. Childcare services Personal services are extremely important in the welfare system outside these hours.

Finally it is lives of working parents. This applies in particu- important to take the time dimension of care lar to childcare services, as care responsibilities into account. Since care may be provided on a constitute a major obstacle to full employment. Ten The availability of childcare services years later, at the Barcelona summit, the aims are formulated more explicitly and targets In order to do justice to the statistical complex- are set with regard to childcare. The calculations are and strive, taking into account the demand for done as follows: per childcare facility for which childcare facilities and in line with national pat- data are available, the share of total children terns of provision, to provide childcare by cared for was calculated.

This means of children under 3 years of age. Assessing the availability of childcare services available. At the same time, the coverage rate is not an easy task, however. Comparable data may be overestimated as the result of double on the provision of childcare services are still counting. Double counting is, however, avoid- not available. National statistics are not easily ed as far as possible by excluding arrange- converted to a common standard, given the ments that are clearly overlapping, such as spe- fact that each country has its own unique con- cial holiday arrangements.

Unfortunately, no stellation of childcare arrangements, consist- consistent data were available on the time dur- ing of services and facilities such as day care ing which the care is available. Available child- centres, kindergarten, family-type care, nan- care could therefore not be calculated in full- nies, child-minder at home, pre-school edu- time equivalent terms, as a result of which part- cation system, etc. More over, countries may time facilities have been given the same weight differ in the division between formal and infor- as full-time facilities.

Funding programmes for employers, for working-time regime allows for diverse work- example, or tax measures for parents imply ing-time patterns like the Netherlands, the public support for a private market. In addi- United Kingdom and — to a lesser extent — Den- tion, the relationship between childcare and mark and Sweden. In some coun- Graph 8 summarises childcare coverage rate tries pre-school hours may cover all day, per Member State. Espe- al sources, and taking into account the different cially in the Flemish part of Belgium and Den- national arrangements.

In particular, pre-school mark the coverage of the childcare sector is arrangements have been included given that it rather high, as is the case in Iceland.

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France and is impossible to differentiate between care Sweden also score rather favourably, whereas within and outside of the education system. When interpret- though. Finally, it should be noted that the fig- ing this graph, it has to be taken into account ures refer mainly to childcare facilities. In a few that the coverage rate is, to a large extent, countries it includes pre-school. In most Mem- influenced by the high coverage rate of pre- ber States the admission age to pre-primary school arrangements.

In most countries, how- education is at least three. In six Member ever, pre-school is only part-time, therefore States, however, children may participate from working parents still need additional childcare age two or two-and-a-half Belgium, Germany, facilities, which are much less available. The availability of childcare facilities does not school is set at one. In fact, especially in the answer the question of whether demand is fully New Member States, the differences between met. The actual demand for childcare is influ- childcare services and pre-school arrangements enced by the participation rate of parents are not always clear.

In Fin- aged three to the mandatory school age. Yet, childcare facilities are not in short Graph 8. In fact, since , Finnish children not always match working hours. See Box 1 for under the age of three are guaranteed a munic- more details in this respect. The relatively low Regional disparities are also an important issue coverage rate indicates therefore not shortages when it comes to the availability and accessibil- but alternative ways of looking after young chil- ity of childcare facilities.

In most countries there dren, such as parental leave facilities. In the is a clear difference between more urbanised Finnish case, each family is entitled to 26 weeks and the more rural areas. In addition, there may of parental leave to be taken after maternity be large differences among regions. In Italy for leave. The situation school are also entitled to work reduced hours seems even more extreme in Germany. In West either 6 hour days or 30 hours per week see Germany, the coverage rates for children aged Chapter 4 for more details.

On the other And in the Czech Republic, despite the unlike the other Scandinavian countries, child- generally dense network of kindergartens, there care services are not a social right. This political goal for care services. In other coun- problem is partially addressed by joining kinder- tries, the supply of high quality and affordable gartens and elementary schools within one childcare facilities may be insufficient.

In partic- building and under joint direction. For children Finally is has to be taken into account that there age 3 till mandatory school age, supply is high- is no uniform trend with regard to childcare er, but the opening hours of the facilities may facilities. Childcare services Box 1. The main problem for working parents — espe- cially of children older than 2. CZ After November , the number of facilities for small children dropped sharply, partly due to an exten- sion of the period of parental leave. DK Full coverage. From July all municipalities have to offer a guarantee of childcare from the age of 9 months until the school age of 6 years.

If the municipality fails, parents are entitled to economic com- pensation corresponding to private care with a maximum of the costs of day care facilities for children in the age group. Yet, since it is stated by federal law that each child over 3 has the right to be in a publicly provided, financed or sub- sidised childcare facility. Most of the places are, however, on a part-time basis, with opening hours in the morning and offering no meals. EE Childcare facilities for children under 3 years old are rare and in urban settings there is a lack of free pla- ces for every age.

Local governments must guarantee places in nurseries for children who are at least 3 years old. EL Little coverage for children under 3 years; more extensive coverage for those aged from 3 years to man- datory school age. Due to a decentralisation of the provision of public childcare there is, however, a severe lack of reliable data. ES Limited coverage for young children; full coverage for children aged FR Full coverage for children from 3 years old. For younger children the system is less developed and demand is not met. The others are looked after by their parents who may be on parental leave or by an informal arrangement.

IT Highly differentiated arrangements by age of children, geographical area and by household type. Grandparents are the main caretakers when children are small; coverage by nurseries is small and by far insufficient to meet the demand of working parents. Grandparents still provide substantial informal sup- port when children move to maternal and primary school. CY Provision of childcare is limited.

Grandmothers play an active role in the care of their grandchildren. In addition, there is an influx of domestic workers from countries like Sri Lanka and Philippines who are affordable for medium- to high-income households. LV Limited public coverage for young children; fuller coverage for the age group MT Serious lack of childcare facilities. Availability of childcare facilities cont.

NL A large increase in the supply of childcare, in combination with increased costs has brought the market more or less into equilibrium. For children in the age category years both supply and demand is rather limited. AT Almost universal childcare for children in the last two years before mandatory school age, but very limi- ted childcare for children under 3 years of age. The enrolment rate of children aged between 6 and 14 years in afternoon care facilities is also rather low.

PL Since many childcare facilities have been closed or privatised. The coverage rate dropped from 4. There are, however, large differences between urban and rural areas. SK Limited provision of and demand for childcare facilities for children aged 0 to 3-year-olds. Nearly all demand for kindergarten is met, although not always in the preferred location. FI Since all children under the age of 3 are guaranteed a municipal childcare place irrespective of the labour market status of the parents.

In , this right to day care was extended to cover all children under school age 7 years. SE Public childcare is available all over Sweden. All children between 1 and 12 years have the right to child- care, pre-school children years on a full-time or part-time basis and school children years of age are entitled to care after school-hours e.

There is an increase in the num- ber of children attending pre-school because of a new right for children of unemployed parents and parents on parental leave to attend pre-school. UK Traditionally, there is a heavy use of informal arrangements. Since , the national childcare strategy and a number of government initiatives have sought to increase the accessibility, affordability and qua- lity of childcare and early education services. Yet, most of the places created are part-time and targeted at 3 and 4-year-olds. In addition, out-of-school provision for school age children remains very limited.

LI Small expansion of childcare facilities, but waiting lists indicate that demand is not met. A popular alter- native is the use of family day care. NO Since , full coverage for care services has been the political goal, implying the provision of places to all parents who want a place for their children. Grand- mothers play an active role in the care of young children up to the age of 3. RO Very low coverage. In addition, the quality of the childcare services, mainly because of the inadequate qualifications of the staff, causes problems.

Childcare services the United Kingdom are clearly moving As most childcare services are partly sub- towards a fuller coverage. Others are more or sidised, parents do not pay full costs. The avail- less at a standstill Malta, Greece, Spain, Italy , able information about the consumer price of whereas in some of the former eastern Euro- childcare facilities is summarised in Box 2.

It pean countries there is a clear downward ten- seems that in most states childcare services are dency with regard to childcare facilities. For not freely accessible. In several countries, care of very small children fell sharply. This such as France, Ireland, the Netherlands, the decline was connected with the extension of United Kingdom, Norway before the price the period of parental leave to three years and reform of , Bulgaria and to some extent the prolonging of the period of parental bene- Italy, parents assess childcare services as fit payments, which was set at four years.

Cur- expensive. In Hungary, care provides a significant barrier to the uptake the number of places available per children of further education or work for low-income aged dropped form This downward tendency is partly due to higher income levels, particularly for families the decrease of state support and partly due to with more than one child requiring childcare. OECD Acceptability Affordability Quite apart from the affordability, cultural In most countries childcare services are sub- norms about motherhood and about the prop- sidised by one means or another.

Box 3 summarises the ing program. Subsidies may be paid through available evidence in this respect. Quite often attitudes differ The actual national program might be according to the age of the children. For young quite complex, combining different elements. Instead, the preferred bined an unpaid statutory leave with publicly arrangement is often leave facilities or informal provided playgroups and supply subsidies to arrangements with a family member especially childcare services, together with tax deduc- grandparents. Programs are also Flexible vate markets.

In , for example, the Dutch use refers to flexibility over the week or over system of supply subsidies disappeared. Childcare centres seem most flexible Instead, parents who make use of formal child- in terms of the number of hours they offer. Childcare costs for parents, by childcare arrangement Price of childcare facility Affordability BE Fr Parents pay an income-related fee, between 1. The costs vary among municipalities. DE Parents pay an income-related fee, which differs Due to lack of transparency, general assess- between communities and regions.

Research ment is difficult. EE Parents pay the catering expenses. In addition, other costs administration, staff, social taxes and teaching aid costs are partially covered by parents. EL Parents pay an income-related fee, which differs Due to lack of transparency, general assess- between communities and regions. Monthly ment is difficult. ES Parents pay an income-related fee; childcare is subsidised for low-income families only. The general trend is towards individual forms of childcare.

Childcare services Box 2. Childcare costs for parents, by childcare arrangement cont. Price of childcare facility Affordability IE There is very little public funding of childcare, Costs are high — research reveals that Irish as a result of which costs of formal childcare people are paying almost twice as much as facilities are high. The costs of childcare are a particular issue for disadvan- taged single-parent families and higher- income families with more than one child requiring childcare.

IT Parents pay an income-related fee, which differs Public childcare services are inexpensive between municipalities and regions. The maxi- compared to the private sector alternatives, mum amount of fees set by the municipalities is but expensive compared to female average roughly equivalent to what is charged by some earnings.

CY As public funding is limited, most parents are obliged to pay full costs of private day care facilities. LV Parents pay for food; the average price is 1,3 Prices are high for low-income families euro per day. In private not subsidised child- households with one or two long term care centres the price is higher; around euro unemployed and several children.

In most a day. LT Prices are set by providers of services. LU HU Free access; parents only pay for the meal. Despite the advantageous childcare facilities, some social groups, particularly Roma fami- lies, cannot afford the costs. AT Parents pay an income-related fee which varies by region. PT Public services are free, but their schedule is Childcare is relatively affordable, partly not compatible with the needs of working par- because of a large semi informal sector.

A registered or non registered child min- der is the common form of provision used by low-class and middle-class families with costs of approximately euro per month. Child-mind- ing activities are tax free, but no social security benefits are offered. SI Parents pay an income-related fee, the actual amount of which is defined by the municipality. SK Parents pay an income-related fee, which differs between municipalities. SE Parents pay an income-related fee, which may differ by municipality. Childcare Tax Credit CCTC support The Government pays most of the rest, plus a offers some respite for the childcare costs for small contribution from employers.

On average, low-income families, but only covers part of childcare costs absorb around a quarter of a the costs. IS In Reykjavik, in , every child years will Childcare facilities are relatively expensive for have the right to attend pre-primary school for low-income parents. Recent developments, 2 hours each day free of charge. In general, however, try to provide some hours each day parents pay a fee that differs between munici- free of charge. LI Parents pay an income-related fee. Price of childcare facility Affordability NO Maximum payment for a full-time place is Childcare facilities may be expensive for lower approximately euro; plans to lower the pay- income families.

Practices regarding income- ment by 1 August may be delayed. About graded rates vary extensively by local level. BG Parents pay a fee that varies on the number of Private childcare institutions charge high children. In Sweden, opening eries are open Monday to Friday between 8.

In Latvia, most public childcare centres 4. However, in some countries, are open between 7. Kindergartens may close down for the hours. In other countries, for example Ireland, summer, but in that case municipalities try to there is a lack of part-time places, since most offer a place in a kindergarten nearby. In the Netherlands, where most women work part- Employer involvement time, part-time childcare is very common and parents may use different time-schedules dur- The overall availability of childcare provides lit- ing the week for example, two, three or four tle information on the division of responsibility days.

A high level of childcare centres. In addition, the pre- school-system offers care, salistic services, publicly funded for both chil- but the opening hours are often rather limited. In addition, most Dutch al model in which neither the state nor the schools have a lunch break of approximately employer is very active in taking over individual 1. The most ambiguous that children have their lunch at home.

An cases are therefore countries with a medium exception is France, which is known for the score; in these cases the role of employers may long school hours. A typical day is from 8. In fact, Box 4 indicates that in attached for the period between 4. Another common complaint is that is fairly limited or even non-existent. The few exceptions refer to large companies, mas, Easter , which is a problem for workers especially banks and hospitals but also large that have only a limited number of free days.

Attitudes towards institutionalised childcare CZ There is some reluctance to use childcare facilities, related to the fact that during the socialist period the use of nurseries was usually accompanied by the frequent illness of the child. Enrolment rates are very low. DK Childcare facilities are well integrated into the Danish welfare state. The most common care arrangement for babies and infants of working parents is still at-home care by family members, usually grandparents.

ES Attitudes differ by the age of the child. The most preferred option for children under two is the help of grandmothers followed by paid help at home. CY Rather strong public disapproval, especially in the case of young children. HU Most women stay at home until the child is 3 years of age.

NL Attitudes differ by the age of the child. The average use of childcare facilities for children in the age category is 2,5 day a week. PL Attitudes differ by the age of the child. Thus, attitudes suggest a preference for informal childcare arrangements provided at home, especially for younger children. PT Rather positive attitude; mothers should have a job in order to be good educator, well informed about the facts of life.

Full employment of mother with children until 2 years of age, however, is not regar- ded positively for the well-being of children. SE Childcare facilities are well integrated into the Swedish welfare state UK Although there is widespread support for the expansion of childcare subsides and other work-family reconciliation measures in Britain, the cultural norm that a good mother does not put her pre-school children into formal childcare is still strong.

Many families prefer informal childcare arrangements with family members and local networks of friends. IS Positive attitude; strong emphasis on the positive pedagogical and educational effects of pre-primary childcare arrangements. LI There are strong traditional family values. Yet, surveys indicate a growing acceptability of working mothers and extra-familiar childcare.

NO Positive attitude especially due to the strong increase in demand during the last decade. BG It is preferred to raise babies and children up to the age of 3 years at home. Childcare services Box 4. DK Limited company involvement. DE Little company involvement; less than 0. EE Limited company involvement. This provision has faced resistance from employers and their organisations, however. In contrast, some social security schemes or big private firms make deals with private nurseries and provide to the persons insured access to childcare servi- ces free of charge.

ES Very limited company involvement. FR Major companies offer or participate in providing childcare services, examples included banks, uni- versity hospitals, Michelin, and the Post Office. IE Only a few companies, mostly in the public sector, provide childcare services.

Der demografische Wandel und die Rente. Welche Konsequenzen hat er für das Rentensystem?

IT No company involvement. CY No company involvement. LV Very few companies provide kindergartens. LT No information available. LU Some major companies banks, hospitals offer childcare services. The Ministry of Family, Social Soli- darity and Youth uses part of its budget to promote the creation of day care centres by private indi- viduals or companies.

HU Since the transition, employers usually do not have their own childcare institution anymore, but in some cases they subsidise public kindergartens in order to support their own employees. MT No company involvement. NL The provision of formal childcare is seen as a combined responsibility of the government, the employers and the employee. AT Childcare facilities at company level hardly play a role in Austria.

According to the Mikrozensus sur- vey of , only 0. In case of public companies financial donation to childcare facilities is sometimes practised, depending on the economic performance of the donating establishment. PT No information available. SI Very little company involvement. SK Very little company involvement. FI No company involvement. SE No company involvement. IS No company involvement. LI Hardly any company involvement. NO No company involvement. BG The employers do not play an important role in the provision of childcare services.

The childcare ins- titutions that existed under the state enterprises before the reform were closed at the beginning of transition due to financial reasons, enterprise restructuring or liquidation. RO No company involvement. Also the and the employee. By institutional pressure and public sector is more likely to make this provi- tax deductions, employers were stimulated to sion than private sector workplaces. Evidence arrange childcare places for their employees.

In some of come into force. With this new act, financial the former Eastern European countries Hun- support will be redirected from the providers of gary, Bulgaria the transition has had a major childcare municipalities to the parents with impact on company involvement: child institu- the aim to increase parental choice. The financ- tions that existed before the reform were ing is again on a tripartite basis; at a macro- closed during the transition period as a result level the employers, the employees and the of financial reasons, enterprise restructuring state pay approximately one third of the child- and liquidation.

The contribution by employers, however, is not mandatory; employers are sup- In it was estimated ices seem to be most pronounced. Childcare services receive some contribution from their employer; ket at high prices. In still other countries preferences for institutionalised childcare services are limited: In these care subsidies are accompanied by higher instances, parental leave facilities, or informal female participation Jaumotte No arrangements like grandparents are the pre- doubt this is an important argument for the tar- ferred alternatives.

Large and public sector gets set at Barcelona. Throughout Europe, employers supplement public provisions to a however, the availability and affordability of greater degree than other types of employers. In a few countries, However, overall the role of employers seems childcare is seen as a social right and offered at rather limited. Only in the Netherlands is the highly subsidised prices. In other countries, provision of childcare seen as a shared respon- public subsidies are limited and childcare serv- sibility of the state, the employer and the ices are only supplied through the private mar- employee.

Leave facilities Besides childcare, leave facilities are an impor- a directive of the European Council which tant element of reconciliation policy. Especially obliges Member States to introduce legislation when children are young, time-related provi- on parental leave that will enable parents to sions such as leave arrangements, career care full-time for their child over a period of breaks and the reductions of working time are three months. In principle this refers to an indi- extremely important for combining work and vidual, non-transferable entitlement.

This direc- private life. Entitlement to time-related provi- tive ensures that a certain minimum standard is sions are usually granted to parents though in guaranteed within the Member States. Over some instances also grandparents can make and above this, however, there is a broad range use of them. Details of the entitlements and of national regulation with countries differing the substances of the provisions have been as to payments, duration, and entitlement.

Yet it remains dif- ficult to make strict comparisons, given the dif- In order to organise the available Republic, Germany, Spain, France, Latvia, information in a convenient way, this Chapter Lithuania, Poland and Slovakia to only 3 will concentrate on the provision of maternity, months in Liechtenstein. In some countries paternity and parental leave. Chapter 5 will parental leave is unpaid Greece, Spain, Ire- focus on flexible working-time arrangements in land, Malta, the Netherlands, Portugal, United general.

Kingdom and Liechtenstein while in other countries leave-takers are compensated more The provision of effective parental or less for their loss of earnings. Payments vary leave from fixed flat-rate amounts in Belgium, Ger- many, Latvia, Austria and Slovakia, to wage- Since June , national policy in the field of related payment in Denmark although to a leave arrangements has been underpinned by certain maximum , Estonia, Italy, Lithuania, Graph In addition, parental leave can be organ- ised along family or individual lines.

If the for- There is some research available about the fac- mer is used as the basis, parents are in a posi- tors determining the take-up of parental leave. In con- related with take-up rates. The payment level trast, if both parents have an individual, non- also effects which of the parents will take up transferable entitlement to parental leave, parental leave.

For the parent with the better- then both can claim a period of leave. If one paid job the costs of parental leave are highest. Especially in the leave is low, it is most likely that the parent with 10 New Member States the parental leave is the lowest income will stay at home to care for often framed as a family right.

This partly explains the considerable differences in take-up rates between men and In order to assess the impact and importance of women: because of the wage gap women on the leave facilities in the national contact, it is average contribute less to the family budget and not possible to rank the countries simply on the are more likely to look after their children and length of the consecutive weeks of maternity exit the labour market temporarily national and parental leave.

Country differences may be reports of Belgium, the Netherlands, Bulgaria. This calls for informa- Another important factor is organisational culture. As this information is scarce, for small children, irrespective of their income. This we have used the payment level instead, argu- social role model often underlies organisational ing that the take-up will presumably increase cultures. By weighting the dura- negative attitude towards men taking parental tion of the parental leave by the level of pay- leave.

As Graph 10 indicates, this for women. Yet, evidence of discrimination against effective leave varies from weeks in Lithua- pregnant women is available in a number of coun- nia and weeks in Sweden to 9 weeks for tries, including Bulgaria, Slovenia and the United Malta, 10 weeks for Liechtenstein and 11 Kingdom. So both genders suffer from unsupport- weeks in Ireland, Cyprus and the Netherlands. The length of the effective leave already indi- cates the importance of leave facilities in actu- Thirdly flexibility has to be mentioned. Flexibility in al working-time behaviour. In general, the take- the take-up of leave may facilitate a parallel strate- up of leave varies extensively with low rates gy in the sense that parents care for their children reported in, for example, Ireland, Italy, and the and stay in the labour market simultaneously.

In United Kingdom, to almost universal take-up in some countries parents are not obliged to take up the Czech Republic, Germany and Estonia see their parental leave on a full-time basis. For Box 5. Medium levels are reported in Spain, instance, Belgian parents are permitted to take up France and the Netherlands. In the Nether- ment. Take-up of leave BE Since the introduction of parental leave in Belgium, the number of users has increased. In still only about 6. The one- fifth time-reduction is most popular amongst both men and women. The majority of women stay at home with their children until the child is 2 or 3 years old this is also related to the possibility of finding a vacancy in a pre-school facility.

On average women take parental leave for two years, while for men the average duration of parental leave is less than one year. Slightly fewer than one thousand men take parental leave annually. Women still take the predominant part of the leave EE The majority of women take parental leave as full-time out of employment.

The take-up rate of men is very small. EL Very low take-up rates by both men and women. The right to a continuous career break taken after maternity leave avai- lable since to working parents in the public sector have become very popular in recent years among working mothers. ES The total number of maternity leaves per year is usually only one third of the total number of children born in the same year in Spain. The percentage of fathers taking part of the maternity leave is low and growing very slowly from 0. In only 3. There is no information on the length of leave taken up.

FR One out of two or three eligible women actually takes up leave APE in contrast to one out of a hun- dred eligible men. IT Three out of four mothers take up parental leave. About half of them have taken parental leave within the first three years of the child. Longer and unpaid leave remains a female option. There are, expectedly, some differences in terms of distance to access services as well as the diversity of options available. Health care services are generally better in the West than in the East. In terms of education, the differences in basic access by region type are most notable at the tertiary level.

Some services of public interest such as retail, post and banks are growing thinner in some more remote locations. While basic telecommunications infrastructure is available throughout Germany, broadband access is more difficult in peripheral areas, particularly in East Germany. Given the current settlement pattern, projected demographic trends and impacts on tax bases, the capacity of public finances to sustain the current level of public services in many regions is of major concern.

For instance, in some remote regions, such as the Mecklenberg Lake District, some localities may have no family doctors by , and even middle and high level centres would experience significant losses. The East versus West divide is significant in many aspects. What is the German policy approach to address such diverse, complex development dynamics?

The improvement of agrarian structure and coastal protection, as well as regional development policy are organised as joint tasks the GAK and GRW respectively. As a result, the German approach to rural policy and its funding tend to complement EU agricultural policy rather than contribute to a national, strategic policy for rural development. Although this approach was justified at the time of the creation of the GAK, it is poorly adapted to the present characteristics of rural Germany. Due to a relatively narrow framework set at the supranational level Community Regulation No. Limitations derive from its remedial, top-down nature, as well as from its geographically limited scope.

GRW is mostly conceived as a mechanism to compensate for structural disadvantages more than a tool to increase competitiveness and job creation. The disconnect between a regional, urban-focused policy, and a weak rural policy raises concerns in terms of the government capacity to cope with rural-urban linkages, particularly relevant in Germany due to its geographic and demographic structure.

Klaus F. Zimmermann - News Items

Key priorities of an effective RD strategy should include 1 investing on rural business development and innovation… Five priority areas are identified which are key to addressing cross-cutting determinants of rural competitiveness and social cohesion. The first is fostering business development and innovation through the provision of public goods and territorially targeted education and training policies. Following good practices across the OECD, the prevailing logic should be one of increased investments and employment creation, rather than subsidies, in sectors such as amenity-based tourism, manufacturing SMEs, energy production and services to the elderly bearing potential given national and international trends.

Focus should be placed on providing services that rural businesses often lack as well as skills development programmes that are adapted to the needs and opportunities of different places. Many of the areas with the highest value on a scale concerning the tourist appeal and quality of the landscape are rural areas.

In fact, 55 of the rural districts in Germany have above average scores on this scale top two categories. Thirty-three of those 55 rural districts are actually located in broader regions that are facing economic problems and sources of out-migration. None of those top-scoring districts are rural districts near agglomerations. This highlights the scope for policies to support amenitybased development especially in rural regions that are currently lagging behind. Renewable energy sources provide other opportunities for rural areas in a context in which EU and national level policy support the demand for such energy sources.

An increasing portion of energy is coming from renewable sources, with the greatest growth in wind and biomass generation. Wind, energy and water energy generation are additional opportunities in some rural regions. Germany actually has the highest total installed wind energy in the world. Exploiting this potential will require strong co-ordination between energy policy and rural development strategies so to maximise rural jobs and income creation and minimise environmental problems.

The strain on public finances to ensure delivery of services is starting to show in the more sparsely populated peripheral areas, mainly in East Germany. This is the result of faster rates of ageing, depopulation and lower tax bases. Demographic projections show that these trends will only get worse. The economic sustainability of such services should be pursued by modernising delivery in key sectors such as health care and education.

Building on several good practices in OECD countries, these exceptions could be developed into a national, place-based strategy for service delivery based on innovation and resource pooling as means to find acceptable solutions to equity-efficiency trade-offs. For what concerns central level governance of rural policy, three priorities for action emerge. This is a key point if rural policy is not to be narrowly confined to programmes that are explicitly targeting specific areas.

Instead, rural policy should be used as a means to increase coherence of sectoral policy and nonsectoral policy and cope with unintended effects on certain types of regions. The rural-proofing of sectoral policies such as economic, social, environmental transport and energy policies could bring great benefits to the sustainable development of German rural regions. Thirdly, it may be useful to also consider refining the current legal framework for rural policy. The current distribution of responsibilities over rural policy still rests on a legal framework developed in a very different context.

The actual and potential role of rural areas has changed considerably since then. This could allow rural development policy to embrace a broader approach and clarify the responsibility over rural issues as well as co-ordination and rural proofing mechanisms. In Germany, translating this into practice requires progress in at least three areas. A more effective vertical co-ordination of rural development policy in Germany may benefit from rethinking the role and functioning of these two Joint Tasks.

Their scope could be expanded beyond respectively an agriculture focus and a remedial one, towards explicit rural development objectives pursued through policies for competitiveness and employment creation. Secondly, there is a need to strengthen monitoring and evaluation of rural policies and introduce performance reserves and incentives for increased local planning and co-operation. Thirdly, capacity needs could be addressed in two areas.

On the one side, skills required for effective rural place-based polices necessitate a paradigm shift from sectoral approaches and clear-cut hierarchical relationships. On the other side, intermediate and local actors need to learn how to manage a new responsibility sharing-role and to collect, share and use knowledge effectively. One related issue to be addressed is the resistance of local and regional authorities to establishing professional regional management groups which can greatly contribute to rural policy design and implementation.

A major criticism of both the GAK and GRW approaches is that the resulting policies are inherently top-down in nature. What is missing is a strong and broad participation of local and regional institutions and private actors in the preparation and implementation of measures. In this context, it is particularly important to develop mechanisms that are able to link sub-national governments and wider interest groups to policy design processes.

These place-based programmes have had well-documented positive results in terms of mobilising local actors and institutions. Also, they have proven to be effective in fostering partnerships and planning capacity which in turn support the integration of policies at the local level. These types of programmes could be provided with more financial resources. However, the key point is that these approaches should be mainstreamed so that their numerous methodological innovations are integrated into the overall rural policymaking.

Two types of knowledge gaps need to be addressed in order to adopt a holistic approach that accounts for the complex dynamics of rural development. The first gap concerns trends in rural areas. Similarly with what is the case in terms of policy making, research in rural development suffers from biases towards urban and agricultural research.

The resulting knowledge gap is relevant and hampers the understanding of rural dynamics and thus the development of informed strategies and policies for rural areas. A second knowledge gap concerns policies directed to rural areas. There is a need for mechanisms to clarify who does what in rural policy and with what resources and impact.

Such stakeholders would represent both rural and urban concerns, as well as consumers, environmental groups, farm and non-farm industries and other organised and less-organised stakeholders of rural development. A new vision for rural Germany should stress that increased societal attention to rural development and new consumer demands will create significant opportunities for rural inhabitants including farm households which increasingly rely on off-farm income. Summing up Rural policy in Germany has to be understood in a context that is peculiar given on the one side the institutional characteristics of the country and on the other side its geography and demographic patterns.

There is a great degree of spatial heterogeneity in terms of challenges and opportunities of German rural areas. However for rural policy to be an effective part of the policy process it will have to evolve beyond the existing limits in Germany. The implementation of these reforms will require as a precondition the acknowledgement that, although appropriate at a certain moment in time, the present approach to rural policy needs profound modifications.

This consensus should be built progressively and through the diffusion of well-researched, objective information to both policy makers and broad sectors of civil society on the status and challenges of rural Germany. Ultimately, the development trajectory of rural Germany is to be seen as a matter of national concern, with relevance for the future of rural as well as urban citizens.

It identifies trends, challenges and opportunities for such regions. It begins by defining the rural areas that will serve as the basic unit of analysis for the review. It then analyses rural areas on demographic, social, economic and environmental indicators. This analysis includes variations among different types of rural areas as well as comparisons to non-rural regions. Finally, it highlights some of the most significant policy challenges from a territorial perspective based on the wide variations heterogeneity in the assets and performance of different types of rural regions.

In East German rural districts, this out-migration, especially of younger populations, compounded by the general ageing of the population is the most severe and is only expected to grow more acute in the future. North versus South differences are also noticeable. The differences in employment rate, as well as commuting, also explain this lower level performance in predominantly rural regions in Germany, more so than sectoral specialisation or the proportion of old residents. Rural districts exhibit the highest rates of unemployment within East Germany, although in West Germany rural districts have lower unemployment relative to urban areas.

This high level of accessibility is attributable to the polycentric multiple urban centres settlement structure supported by national spatial policy. The future sustainability of public services in some of these regions is of major concern, especially in East Germany. In contrast to core cities, rural districts have a somewhat higher per cent of manufacturing mainly of materials and components as opposed to finished products and significantly fewer professional services.

In terms of firm starts, of the 20 top-ranked districts in , seven are rural, albeit only one was from East Germany, but rural districts are overrepresented in poor performing districts. Furthermore, many rural districts, especially in East Germany, lack clusters and other innovation resources to stimulate more economic growth. There is a potential for exploiting new markets such as renewable energy, farm tourism, marketing of farm produce, maintenance of rural landscapes, and services for older populations, among others.

Other economic development opportunities may concern natural and cultural amenities tourism and beyond. These niche markets, however, need to be complemented by measures to solve much broader needs for economic development. A uniform policy approach to rural regions would not effectively address these different development trajectories.

A territorial and multi-sectoral policy approach is therefore warranted.


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Germany is one of the most densely populated countries in the OECD. Furthermore, that population is more evenly distributed across the country than it is in other OECD countries. This dispersion of population in different region types throughout the country is facilitated by its multiple urban nodes i. Nevertheless, there are pockets of more peripheral areas, such as in and around East Germany and near the Czech border among other areas.

There can also be significant variations in population distribution even in the same area of the country, such as between the Munich metropolitan area and the nearby Bavarian forest. The aim of this chapter is therefore to provide a comprehensive overview of the socio-economic dynamics characterising rural areas in Germany and the resulting policy implications. This chapter identifies trends, challenges and opportunities for such regions.


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  8. Section 1. Finally, Section 1. There are multiple definitions of rural… The OECD definition of rural regions offers an important basis of comparison among region types across OECD countries using a standard definition. This definition is based on the assessment that rural regions have a significant number of communities with low population density and do not contain a major urban centre.

    Regions are thus classified not as being rural or urban per se. Depending on the share of population living in rural communities, they are classified as predominantly rural PR , intermediate IN or predominantly urban PU. The Federal Office for Building and Regional Planning BBR uses a series of different regional classifications depending on the purpose of the analysis. These Box 1. The classifications are based on two territorial levels TLs. The higher level Territorial Level 2 consists of about macro-regions while the lower level Territorial Level 3 is composed of more than 2 micro-regions.

    This classification — which for European countries is largely consistent with the Eurostat classification — facilitates greater comparability of regions at the same territorial level. Indeed, the two levels, which are officially established and relatively stable in all member countries, are used by many as a framework for implementing regional policies.

    To take account of these differences and establish meaningful comparisons between regions belonging to the same type and level, the OECD has established a regional typology according t o wh ich reg io ns have b ee n cl assifie d as pre do mi nantly ur ban, predominantly rural and intermediate using three criteria: 1. Population density. A community is defined as rural if its population density is below inhabitants per km 2 inhabitants for Japan to account for the fact that its national population density exceeds inhabitants per km2.

    Urban centres. One commonly used categorisation has three territorial categories agglomerations, urbanised areas and rural areas. As highlighted in Table 1. For the purposes of this report, comparisons of regions within Germany will be made at this district level to better appreciate the within-country differences. Special attention will also be made to variations across rural districts that are close to agglomerations and urbanised areas, which have greater opportunities for urban-rural linkages, versus those rural districts in a peripheral location, whose relative remoteness can imply different policy strategies.

    Table 1. Figure 1. The OECD definition uses a more aggregated region size than the German district and incorporates the presence of an urban centre, which serves to explain why some regions that would ordinarily be classified as predominantly rural are classified as intermediate regions by the OECD. Rural development is a complex, multi-sectoral issue. Since the launching of the Rural Development Programme in , the OECD has developed a framework to analyse rural territories that addresses four main development concerns: demographic, social, economic and environmental Figure 1.

    The East versus West Germany divide further sets the stage for the analysis of rural trends, as East German districts are typically worse off in terms GDP per capita, ageing, access to urban centres and population density see Box 1. There are also distinctive differences in the socio-economic development in West Germany between rural districts near agglomerations and more peripheral rural regions.

    This section will analyse the core trends in rural areas in Germany under the four development categories. Germany currently has a population of approximately The districts range from a population density of approximately 40 to 4 inhabitants per km2, a difference of a factor of In general, the population is also relatively dispersed across the territory. Germany is one of the countries with the lowest score on the regional population concentration index, ranking fifth out of 29 OECD countries see Figures 1.

    Reunification and East versus West differences Upon reunification in , Western Germany experienced an economic boost with a greater market for its goods while Eastern Germany experienced job loss given the sudden higher wages but lack of corresponding productivity increases due to exchange rate differentials and wage setting , and loss of market share as residents preferred to buy many goods from the West. In East Germany, the degradation of former state farms and state industrial enterprises caused extensive employment losses which could not be balanced by the establishment of new enterprises in the production and service sectors.

    The low number of SMEs did not provide a basis for locally based economic development. Massive transfers from the West to the East tried to balance out differences, but most of those transfers were for consumption, not investment. The last estimates available from the German Council of Economic Advisors for indicated a total of net transfers of EUR 64 billion or 3.

    The first major wave from was motivated by uncertainties before reunification and economic opportunities with a second wave from through at least related to the stagnation in the East relative to the improving situation in the West Heiland, During the s, while some districts near urban centres gained population and others farther from urban centres lost population, it was rural and peripheral areas of Eastern Germany that experienced depopulation Bucher, Many rural districts experiencing modest or even rapid growth, yet others depopulation Rural districts overall experienced a net population increase of 3.

    The average is raised by rural districts of agglomerations, which with an increase of 8. Both data sets are the result of modelling in a GIS and widely abstract from administrative boundaries. Then the smoothed population density population density within a radius of 12 km, distance weighted is used to divide the three basic types into the six sub-types shown in the map. These regions often combine advantages associated with proximity to agglomerations employment, particularly for women, commuting, infrastructure with greater access to property and a lower cost of living.

    Rural districts of major density in peripheral regions also experienced an increase of 5. It was rural districts of minor density in peripheral regions that experienced a net population decrease —2. In comparison, core cities also experienced a net population decrease —2. This latter trend of out-migration from cities and in-migration to other urbanised areas is consistent with an ongoing suburbanisation process in most areas of the country. One of the drivers of these variations in population growth is a migration pattern in Germany that follows a clear lifecycle trend and drains rural regions of young adults see Table 1.

    Children under 18 and 30 to year-olds tend to migrate from the core cities to the suburbs. High density districts appear to gain in the migratory balance at all age levels. There is also a strong migration of 18 to year-olds to core cities for education and employment opportunities. This out-migration of youth from rural to urban areas is only increasing over time.

    As illustrated in Figure 1. The magnitude of this migration is greatest in peripheral rural areas of low density, with a net out-migration of —30 per 1 based on BBR a. Rural regions in East Germany hardest hit by out-migration and ageing East-West migration continues well after reunification. Initially this EastWest migration was driven by education and employment opportunities as well as other quality of life factors related to the more Western lifestyle and greater environmental quality, among other factors.

    Net migration of 18 to year-olds Number per 1 18 to year-olds 30 That migration pattern is notably out-migration of youth and young adults seeking better employment and living conditions elsewhere. Ageing of the population is also having a disproportionate impact on rural areas in East Germany. Historically, agglomerations were older than rural areas and cities older than suburban areas but that has changed. In West Germany, while in the past suburban and rural areas had mildly positive natural increase and significantly positive net migration, in the future these areas are expected to have negative natural increases but a net migration to compensate, except perhaps for those peripheral rural districts of low density already losing population.

    The absolute number and proportion of very old persons will consequently be a severe problem for rural areas, notably in East Germany. The northern part of East Germany is expected to experience a very strong increase in the share of very old persons i. Population dynamics by region type: East versus West Germany Natural increase per 1 inhabitants per annum Net migration per 1 inhabitants per annum Regional population dynamics in West Germany Past Future The projections also note strong or very strong increases in the share of very old persons in the high density and rural districts surrounding several major West German cities.

    An accompanying drop in the number of young people will exacerbate this problem. Social well-being and equity Social well-being and equity comprise a range of issues for residents in rural areas. Income is perhaps one of the most standard indicators, which is often evaluated using GDP per capita. Another related indicator, GDP per worker productivity , serves to control for such factors. To better appreciate regional differences in salaries and cost of living, disposable household income per capita is a useful indicator of well-being.

    A study in Germany 5 by region reveals clear differences across the country in terms of residents who reported that they are satisfied with their quality of life. Regression analyses revealed that only the unemployment rate and out-migration were statistically significant variables to explain variations on the regional reporting of satisfaction with quality of life. Therefore, it is not population density per se that is the problem, it is the result of economic distress and its consequences Kawka, see Figure 1.

    This disparity has been stable over the last five years. The fact that peripheral districts perform the same or better on average than rural districts near agglomerations has also been stable over the last five years. However, these statistics should be interpreted with caution as districts with more out-commuters than in-commuters will have a lower GDP per capita because the GDP is counted where the workers work but the population count is based on where the worker lives. The East-West differences are also striking for rural as well as other region types, over 30 percentage points.

    As seen in Figure 1. Among rural district types, the gap is actually lowest for rural districts in agglomerations, at only 11 percentage points BBR, a. Fortunately for Germany, as measured at both the OECD region and German district levels, the rural gap has either stayed constant or slightly declined. Nevertheless, there are several countries for which the gap between rural GDP per capita and the national average has clearly declined, such as in the Czech Republic see Figure 1.

    A further analysis of disposable household income per inhabitant reveals that while rural areas clearly have less disposable income, their growth rates are the same or better than core cities but less than urbanised areas. Unlike GDP per capita, disposable household income figures do not suffer from the commuting bias. However, the compound annual growth rate over the last eight years is about the same in West Germany for core cities and rural districts at 2. In East Germany, the growth rate is actually higher in rural districts, 2. This means that the inactive population in rural areas helps to drive down in part the GDP per capita.

    Among the four rural district types, the differences are also less dramatic than with GDP per capita. These factors explain more of the gap than sectoral specialisation or the proportion of old residents see Figure 1. Unemployment rates highest in cities in the West but rural districts in the East… The unemployment rates not only vary by level between East and West Germany, but the pattern by district type is also very different with the most serious problems in peripheral East Germany. In West Germany, it is core cities that have the highest unemployment rates at In East Germany, the trend is the exact opposite.

    It is the rural districts with the highest average unemployment rate of Within rural district types, in East Germany the sparsely populated rural regions are clearly the worst off with a rate of In West Germany, the variations across rural region types are somewhat less pronounced, with a low of 8. The unemployment of different sub-groups also varies notably by district type. For example, youth unemployment under 25 in the West is considerably higher in rural districts In the East, youth unemployment is actually higher in core cities In terms of the long-term unemployed beyond one year , this region type distinction remains important.

    In West Germany, the long-term unemployed are a lower share of the unemployed in rural districts In East Germany, the urban-rural distinction for the long-term unemployed is less pronounced, with urbanised districts The share of the unemployed in long-term unemployment over one year also shows greater increases in rural areas than other region types. In rural districts overall that figure has grown 12 percentage points from That figure is even higher for peripheral rural regions of low density For example, with an out-migration of higher skilled workers of greater employability, those workers remaining in rural areas may be less easily employable.

    Another possible factor is migration of the long-term unemployed back to rural areas where the cost of living is lower. It appears that for rural regions, the disadvantage is not so much the share of low-skilled workers relative to other region types as it is a lack of high-skilled workers see Figure 1. Given some comparability challenges in the education systems between East and West Germany, the data is presented separately. For West Germany, the share of low skilled workers in the workforce varies little by region type and is actually lowest in rural districts A somewhat greater variation in East Germany results in rural districts at In both East and West Germany, the per cent of the labour force classified as high skilled with a university degree or comparable exam is approximately half the value in rural areas as it is in core cities, with urbanised areas in between.

    In West Germany, those figures are This distribution of high-skilled labour is due in part to the out-migration of young and high-skilled people from rural areas to urban centres. These rural districts are therefore near an urban centre of at least inhabitants. Not only are many rural residents near one city, but they may reach several regional centres in Germany within a couple of hours. Most rural counties are on average two hours by car to the closest three out of 36 major regional centres in Germany, a few minutes less on average by train. East German districts typically experience longer distances, on average 30 minutes longer than West German districts.

    That accessibility, whether by car or train, follows the expected pattern of greater accessibility for rural districts close to agglomerations, then urban centres, then peripheral densely populated, and finally peripheral sparsely districts. With very minor exceptions, mainly in East Germany, virtually all of Germany may reach a federal highway Bundesautobahn in less than an hour. By , it is projected that the construction of new highway stretches and access points to cover these pockets of lesser accessibility will greatly reduce travel times, in some cases that reduction in time is expected to be over 45 minutes.

    There are 19 international airports as well as 22 regional airports around the country that facilitate air travel. Nevertheless, the supply and density of public transport is clearly a major challenge for rural areas as illustrated in Figure 1. Overall they average 19 kilometres to work, versus 16 or 12 kilometres for suburban and core city districts respectively. Average commuting distances have increased for cities, suburbs and rural districts of approximately 1 kilometre between and , with rural districts in agglomerations increasing the most at 1.

    Possible explanations for these increasing commuter distances include the general suburbanisation trend especially in East Germany , or a need to travel farther to find jobs. For long distance commuters travelling over 50 km for work, the rate is clearly much higher in Eastern Germany see Figure 1. In West Germany, those areas of long commuting distance appear to be the related to the extended suburbanisation process around major urban centres, where higher land prices are driving commuters further out.

    To access the next three supra-regional centres, the least accessible counties may average upwards of three hours, indicating a greater dependence on the closest supra-regional centre BBR, a. At present, residents throughout the country have access to basic telecommunications, health care and education primary and secondary. There are, expectedly, some differences in terms of distance in access to services as well as the diversity of options available that are described below.

    Some other services of public interest are perhaps less well distributed. Services such as retail, post and banks are growing thinner in some more remote locations. While basic telecommunications infrastructure is available throughout Germany, access to broadband access is more difficult in peripheral areas as infrastructure investment depends on population density. There is a clear gap in Internet use across different region types, although lack of infrastructure may not be the only driver of these differential use rates. However, broadband access is clearly less accessible in more remote rural regions, particularly in East Germany where DSL is not useable as there are glass fibre connections.

    Access to hospitals is generally a minor problem given that the regional distribution of ambulant health services provides ready access. Deficits in health care system are noted in sparsely populated areas due to the lack of critical mass for closer basic services and in the provision of specific health services given the distances to reach such higher order services. Per cent of population within 15 minutes by car to a hospital 10 99 94 80 80 81 86 80 70 60 40 20 0 Core cities Urbanised areas Rural districts Near agglom.

    At the primary and secondary level, access to education has been maintained, even if the ability to maintain the same proximity and level of choices is coming under strain. Some reductions may also be necessary with respect to vocational education programmes as well. There are, however, rural districts that are projected to gain in population of primary school age children so these problems at the primary and secondary level are clearly not uniform across rural areas of Germany.

    This proximity to health care is especially important in the more peripheral and sparsely populated rural areas where the very old population is projected to increase substantially, along with their accompanying health needs and increased level of chronic illnesses. The distribution of general practitioners and the projected declines in their numbers are also of concern for future provision of medical care in those areas.

    Demonstration projects in Germany are underway to identify creative ways to meet these public service delivery needs in the sparsely populated peripheral areas. Economic structure and performance Agriculture plays a minor and declining role in the rural economy Agriculture plays a minor and declining role in the German rural economy, albeit there are clear forward and backward linkages underestimated by basic statistics. In terms of GVA, the share of agriculture was only 2. Similarly, with respect to employment, only 4. This decline in the employment share in agriculture is falling faster in rural areas than in suburban areas —2.

    In the East, the extraordinary decline of agricultural employment resulted from the outstandingly high proportion of agriculturally employed people due to low labour productivity, redundancy and the provision of additional services child care, food services related to the large collective farms. Many farms are small and running on a part-time basis. An average farm size of about 30 hectares underlines a predominantly small structure of the German farming sector in general for more information, see BMELV, b.

    There are of course major differences in farm size by region. Given the history of collective farms in East Germany, the average farm size is much higher hectares per farm in a rural district , than in West Germany 32 hectares BBR, a. There is also notable diversification of income to farm households. Diversification of both farm and non-farm income is providing new opportunities for farm households.

    In fact, Uecker-Randow, the district in Mecklenburg-West Pomerania with the lowest disposable income in Germany, is actively using this strategy and has one of the highest per cent of farmland dedicated to organic farming The Dahme-Spreewald, a rural district near an agglomeration in Brandenberg, dedicates Farm tourism and marketing of own produce are other opportunities now being exploited by German farmers related to farming. More research is necessary to better understand the nature of both farming and non-farming related income in farm households.

    Income from independant activities. The breakout between primary, secondary and tertiary sectors in rural districts in Germany does vary by rural district type see Figure 1. Since agriculture is not driving the economy in rural districts, what is? A more detailed breakout of employment by industrial category Table 1. In terms of manufacturing, while the per cent of overall employment in manufacturing for finished products is not significantly different in core cities Food and beverage manufacturing is more a rural district activity 3.

    Among rural districts, trade employment is highest in districts near agglomerations and lowest in sparsely populated peripheral districts. Sparsely populated rural districts have a higher percentage of employment dedicated to tourism than other district types. These statistics do not, however, fully capture the economic linkages between agriculture and other sectors of employment important to rural areas.

    There are a few industrial categories more highly represented in rural areas where domestic agricultural products are clearly an input. For example, inputs from agriculture, hunting, forestry and fishing represent The sectoral trends in rural regions have changed slightly over the last five years, but not always in the same direction as other region types.

    Between and , rural regions experienced a decline in the per cent of employment attributable to agriculture, fishing and mining from 3. Source: Calculations based on data provided by BBR. In other region types, the per cent attributable to manufacturing declined while services increased see Table 1.

    Some rural regions showing economic dynamism… In West Germany, more than two in five rural districts have experienced employment growth, although few East German rural districts have. Of the districts total, districts experienced an increase in the per cent of employed persons in as compared with Given the poorer economic health on average in East Germany, only two of those rural districts were from East Germany and both are rural districts Bad Doberan district in Mecklenburg-West Pomerania at 1.

    Among the bottom 20 districts, 14 out of 20 are rural BBR, a. The rate of firm starts provides another measure of economic dynamism, and many of the leading districts in the country are actually rural see Figure 1. In the 20 worst ranking districts, 12 of those are rural, all but one being from East Germany. In East Germany, rural districts It should be noted that since , an increasing number of oneperson enterprises has been recorded due to changes in national labour Figure 1. For Germany overall in , the Mittlestand account for In addition to the importance of SME development in general, many rural areas in Germany lack the concentration of firms that contribute to innovation and growth.

    One study of clusters termed spatially concentrated industries or SCI in East Germany highlights quantitatively the kinds of gaps in rural areas relative to other district types. As illustrated in Table 1. Note that in this case the classification of rural does not include rural counties close to agglomerations or urbanised areas but Table 1. Only those spatial planning units unequivocally classifiable by region type were included. Source: Franz, Peter, et al.

    They also found that overall, most SCIs did not have a corresponding formal business network, and that most SCIs with a formal network were found in high or medium population density regions. Furthermore, for the 39 SCIs in rural spaces, none had an accompanying classification of a formalised network or a presence of innovative competences. The industries in SCIs absent from rural areas could be categorised as knowledge intensive. A classification of innovative competencies also noted that the majority are in or close to agglomerations as opposed to other region types Franz, et al.

    Over time, it is expected that agriculture land use will decrease in unfavourable locations, and abandonment of these lands could have negative impacts on the desirability of the area for other purposes. In contrast, a concentration of agricultural activity in the more favourable locations could have a negative impact on the natural resources in those areas like water quality.

    Rural areas as locations of agricultural production and forestry provide important internal food, wood, energy, etc. While the producer prices for most internal services decline, the importance of external services accelerates although no satisfactory remuneration exists. As those external services are not integrated into the calculation of GNP, the entire macroeconomic output of agriculture and forestry exceeds what is registered in the official statistics. Germany is a pioneering country in terms of agri-environmental measures to promote sustainable nature and landscape management.

    An increasing portion of energy is coming from renewable sources, with the greatest growth in wind and biomass generation see Figure 1. Current growth of wood exceeds annual harvest, providing additional biomass possibilities. In , bioenergy made the largest contribution of all renewable energy sources to final energy consumption in Germany. Within Germany, bio-gas electricity generation has grown significantly, doubling in In the same year, bio-fuel sales also nearly doubled, including not only bio-diesel, but also vegetable oils and bioethanol.

    For wind and water energy generation, economic opportunities are of course limited by topography, as coastal and mountainous areas are often more amenable regions. However, their preservation or development may not be guaranteed by market forces alone. Furthermore, there may be competing uses of those same resources. For example, the development of a wind farm or the development of forestry may be in conflict with other environmental and recreational purpose benefits. Amenities have special conditions relating to both production and consumption that are not always effectively present in conventional markets.

    Market failures typically occur where there are few direct incentives for private actors, or even public actors, to provide, maintain or invest in the supply of amenities because it is difficult to convert this investment into revenue accruing solely or in large part to the investors. Each amenity must be analysed to see if it has the characteristics of a public good, a private good, or both, as well as if it involves an externality.

    Landscape related amenities offer a potentially underexploited tool for economic development through tourism. Thirtythree of those 55 rural districts are actually located in broader regions that are facing economic problems and sources of out-migration BBR, b and BBR, a. However, such rural districts have other types of potential tourism appeal that is not captured by this index. Their proximity to large population centres provides other opportunities for tourism on a day-trip basis and can serve as an important urban-rural linkage that provides greater quality of life for urban residents and economic development for rural residents.

    Indices of cultural assets are at too aggregate a level to make comments specifically about rural districts in Germany, but as illustrated in Figure 1. Given the nature of the index and its critiques,14 the important focus is on the differentiation within Germany. Diversity of rural region types identified… While taken as a group rural regions often lag behind core cities and suburban areas on average, the wide variation across rural regions reveals that some perform even better.

    Many of these dimensions are inter-related, as demographic trends impact economic performance and vice versa. The categorisation of four region types used by BBR makes a distinction by population density and proximity to urban areas. The data points to some advantages for rural districts in proximity to large and medium-sized cities in terms of economic linkages, greater access to higher level public services and demographic prospects.

    However, these districts close to large cities also suffer from the other challenges, including the pressures of absorbing high rates of in-migration. Densely populated peripheral rural regions actually perform the best of the four region types on several indicators of well-being. They also show the lowest outmigration of young adults, implying greater access to jobs and educational opportunities.

    However, it is low density peripheral regions that are generally worst off overall given their poorer performance on the constellation of variables, including depopulation. These variables cover demography, employment, settlement structure, land use, etc. BMELV, a. Clusters 1 and 2 are the most troubled, facing economic problems and experiencing out-migration. These regions are predominantly located in Eastern Germany. There are other categories of rural areas with sound economic structure and demographic perspectives. Cluster 4 of rural districts surrounding a core city often benefit demographically from migration.

    Cluster 5 regions tend to have notable tourism. Some rural regions, those in Cluster 6, actually appeared to be economically strong but without any obvious advantage, which implies some interesting economic development trajectories that merit further study. One disadvantage to this categorisation is that the potential of certain rural districts is not as obvious. While some measures may be general to all rural areas, to be effective many others need to be specifically targeted to certain region types.

    Whether those variations are in population density, distance from major urban centres, or available amenities. Rural regions benefit through greater economic activity but the urban regions benefit in terms of natural resources, recreation and quality of life. However, a major challenge for successful linkages is the ability to make them explicit, as opposed to assuming a trickling down of benefits by merely supporting the nearby urban centres. Demographic projects show that these trends will only get worse.

    These challenges are not easy to address, but some demonstration projects are already underway to adjust public services in areas of population decline and hopefully opportunities here will at least meet needs for service equity BMVBS-BBR, However, these new solutions alone will not be able to stem the migration tide. Given their sometimes public and semi-public good aspects, there are clear policy challenges to ensuring the right incentives for their sustainable development.

    Building on some of the existing attempts in Germany at regionally based development strategies, which demonstrated the comprehensive use of hard and soft factors, all types of stakeholders, including policy actors, contribute to the broader exploitation of regional potential. The lack of job opportunities is also driving migration of young adults from East to West and out of sparsely populated peripheral districts.

    Sectors such as tourism, renewable energy, and health and well-being especially for the elderly are among the many possibilities in rural districts. Furthermore, firms in certain rural areas may lack the necessary critical mass of like firms clusters , or innovative infrastructure human resources, knowledge generators to further grow. Attracting or retaining such firms, institutions and skilled labour in those areas is a major policy challenge.

    Pilot projects are underway that focus on developing niche agricultural products and promoting greater awareness among urban populations but there are opportunities for greater advancement with increased levels of financial and other resources to such an integrated approach.

    Klaus F. Zimmermann - News Items

    Notes 1. In the past, data for German regions was based on a different spatial unit. This figure is based on the population counts for available from Eurostat for all rural districts. Separate estimates by the BBR based on a slightly different calculation of rural results in a slightly higher count of For more information, see www. See www. Calculations based on unweighted averages. Calculations based on weighted averages. Per IfM, the promotion instrument business start-up subsidy Ich AG resulted in over persons becoming self-employed in This shift increased firm starts and thus the NUI indicator average of all regions of Germany from These figures are for firms with fewer than employees and a turnover of less than EUR 50 million.

    Regional accessibility Cities and municipalities Regional Aggregate Accessibility Index Accessible population within a radius of km weighted by the distance and including the population abroad near the borders Big cities 1 and more Medium-sized cities Small cities Municipalities to less than 1 to less than to less than to less than Less than Urban System in Germany km Note: Municipalities based on municipal unions as lowest interregional comparable administrative units. Source: European Urban Knowledge Network EUKN website.

    A dummy for East Germany was significant, but did not increase the adj. R2, therefore it was not taken into account in the final model. Source: McKinsey and Company ed. Accessibility to major regional centres in minutes Access to next three centres out of 36 Minimum travel time car or train By car 87 80 79 90 83 68 60 40 20 0 Core cities Urbanised areas Rural districts Near agglom. Agriculture, hunting, forestry and fishing 2. Production, collection and distribution of electricity 0. Mining and quarrying energy 0. Manufacture of gas; distribution of gaseous fuels through mains 3.

    Mining and quarrying non-energy 4. Food products, beverages and tobacco 0. Steam and hot water supply — — Collection, purification and distribution of water 0. Textiles, textile products, leather and footwear 0. Construction 6. Wood and products of wood and cork 3. Wholesale and retail trade; repairs 0.

    Pulp, paper, paper products, printing and publishing 0. Hotels and restaurants 0. Coke, refined petroleum products and nuclear fuel 0. Land transport; transport via pipelines 0. Chemicals excluding pharmaceuticals 0.

    Eeh ab in den Süden – Ejo, was geht?

    Water transport 0. Pharmaceuticals — Air transport 0. Rubber and plastics products 0. Supporting and auxiliary transport activities; activities of travel agencies Other non-metallic mineral products 0. Post and telecommunications 0. Iron and steel 0. Finance and insurance 0. Real estate activities 0. Fabricated metal products, except machinery and equipment Non-ferrous metals 0. Renting of machinery and equipment 0. Machinery and equipment, n. Computer and related activities 0. Office, accounting and computing machinery 0. Research and development 0.

    Electrical machinery and apparatus, n. Other business activities 0. Radio, television and communication equipment 0. Public administration and defence; compulsory social security 0. Medical, precision and optical instruments 0. Education 0. Motor vehicles, trailers and semi-trailers 0. Health and social work 0. Building and repairing of ships and boats 0. Other community, social and personal services 0. Private households with employed persons and extra-territorial organisations and bodies 0. Aircraft and spacecraft — Railroad equipment and transport equipment n.

    Manufacturing n. In this standardised table, category 9 includes pharmaceuticals, 13 includes non-ferrous metals, 22 includes aircraft and spacecraft and railroad equipment and transport equipment n. This chapter begins with a review of the evolution of the German approach to rural development and rural policy. It then presents the current policy framework and the main actors and programmes involved in rural development in Germany.

    Finally the chapter puts forward a number of critical issues that represent the key obstacles to an effective rural policy in Germany.