"Enterprises in the Covid-19-Crisis" - A Comparison between East and West Germany

The covid-19-pandemic has dominated everyday life in many establishments in Germany since the first lockdown began in March 2020. The high-frequency survey "Enterprises in the Covid-19-Crisis" conducted by the Institute for Employment Research (IAB) analyzes the impact of the pandemic on establishments in Germany not only in terms of their general affectedness, but also with regard to aspects relevant to the labor market. The results show that eastern German establishments are less likely to report a negative impact until into the fall. Since the start of the second lockdown, there are no longer any differences compared with western Germany. Hiring and firing behavior turns out to be very similar in both parts of the country over the course of the pandemic, while there are larger differences with regard to cash reserves.