Employment measurement toolkit for KfW

We developed a toolkit to measure the employment effects of KfW financial sector projects

KfW Group is a German government-owned development bank that influences the economic cycle and has a special responsibility; Its task is to ensure sustainability and promote public welfare – within Germany and beyond.

KfW asked Steward Redqueen to develop an econometric estimation model that enables transparent and plausible statements to be made about employment effects of their financial sector projects.

We provided KfW an overview of different impact methodologies that are currently used by peers and others in the impact space. Based on this information it was decided to use IO-modelling in combination with econometric analysis to measure the employment effects related to the financial sector projects in which KfW invests.

The resulting toolkit and its user-friendly interface provide KfW with insights about their employment effects while differentiating between, country, region, financing types and products and specific investee characteristics. These results are used for identifying potential deals, steering on current investments and reporting to various stakeholders, including, among others, Federal Ministry of Economic Cooperation and Development (BMZ).