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

Suggested Citation

  • Hutter, Christian & Weber, Enzo, 2023. "Russia-Ukraine War: A Note on Short-Run Production and Labour Market Effects of the Energy Crisis," MPRA Paper 116620, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:116620
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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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