This paper documents and analyzes changes in relative wages of older East Germans after unification. In 1990, employees above 45 started out with very low wages relative to younger East Germans or West Germans in the same cohort. Results suggest that older employees lost up to 30 percent of their earnings because socialist work experience fully depreciated after the regime change. Older employees lost further in relative terms because they earned much lower returns to education and occupational skills than younger East Germans early in the transition.
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Article provided by Duncker & Humblot, Berlin in its journal Schmollers Jahrbuch.
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Find related papers by JEL classification: J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers P51 - Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems
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