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Russia–Ukraine war: A note on short-run production and labour market effects of the energy crisis

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  • Hutter, Christian
  • Weber, Enzo

Abstract

We provide first causal evidence of effects of the energy crisis on Germany, the largest economy in Europe. Combining cost structure data, national accounts and administrative labour market data, we identify effects in a sectoral panel setting using sector-specific energy intensity as a “bite” variable. The results show that through the channel of energy intensity, monthly production and real turnover decreased by 4.1 and 2.6 per cent, respectively, after the onset of the Russia–Ukraine war. Instead of layoffs, firms safeguarded employment by means of short-time work, with a 24.1 per cent increase in notifications. Vacancy posting was reduced by 10.3 per cent.

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  • Hutter, Christian & Weber, Enzo, 2023. "Russia–Ukraine war: A note on short-run production and labour market effects of the energy crisis," Energy Policy, Elsevier, vol. 183(C).
    • Handle: RePEc:eee:enepol:v:183:y:2023:i:c:s0301421523003877
    DOI: 10.1016/j.enpol.2023.113802
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    More about this item

    Keywords

    Russia–Ukraine war; Energy; Production; Labour market; Germany;
    All these keywords.

    JEL classification:

    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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