Advanced Search
MyIDEAS: Login to save this article or follow this journal

On The Post-Unification Development Of Public And Private Pay In Germany

Contents:

Author Info

  • AXEL HEITMUELLER
  • KOSTAS G. MAVROMARAS

Abstract

German post-unification in the 1990s is a period marked by substantial economic and political change, a crucial part of which was a largely politically motivated attempt to build East German wages towards the much higher West German wages. We study the development of the public-private sector pay gap in Germany in the 1990s. We show that throughout the 1990s the overall pay gap between the public and private sectors remained stable in the West and increased considerably in the East. Wage decompositions show a small and stable negative public sector premium in the West, and a large and increasing positive public sector pay premium in the East. Decompositions also show a considerable deterioration in the skill base of the private sector in the East which the paper attributes in part to the improved attractiveness of the public sector. The paper argues that the development in the size and composition of the public-private sector pay gap in the East is an indication of the public sector crowding out the private sector and raises concerns about the future competitiveness of the East. Copyright � 2007 The Authors; Journal compilation � 2007 Blackwell Publishing Ltd and The University of Manchester.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9957.2007.01024.x
File Function: link to full text
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by University of Manchester in its journal Manchester School.

Volume (Year): 75 (2007)
Issue (Month): 4 (07)
Pages: 422-444

as in new window
Handle: RePEc:bla:manchs:v:75:y:2007:i:4:p:422-444

Contact details of provider:
Postal: Manchester M13 9PL
Phone: (0)161 275 4868
Fax: (0)161 275 4812
Web page: http://www.blackwellpublishing.com/journal.asp?ref=1463-6786
More information through EDIRC

Order Information:
Web: http://www.blackwellpublishing.com/subs.asp?ref=1463-6786

Related research

Keywords:

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, Elsevier, vol. 61(1), pages 5-21, March.
  2. Heitmueller, Axel, 2005. "A Note on Decompositions in Fixed Effects Models in the Presence of Time-Invariant Characteristics," IZA Discussion Papers 1886, Institute for the Study of Labor (IZA).
  3. Christian Dustmann & Arthur Van Soest, 1997. "Wage structures in the private and public sectors in West Germany," Fiscal Studies, Institute for Fiscal Studies, Institute for Fiscal Studies, vol. 18(3), pages 225-247, August.
  4. Michael C. Burda & Christoph M. Schmitd, 1997. "Getting Behind the East-West [German] Wage Differential: Theory and Evidence," William Davidson Institute Working Papers Series 105, William Davidson Institute at the University of Michigan.
  5. Dustmann, C. & van Soest, A., 1997. "Public and Private Sector Wages of Male Workers in Germany," Economics Working Papers, European University Institute eco97/13, European University Institute.
  6. Andrew Henley & Dennis Thomas, 2001. "Public Service Employment and the Public- Private Wage Differential in British Regions," Regional Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 35(3), pages 229-240.
  7. Hunt, Jennifer, 1999. "Post-Unification Wage Growth in East Germany," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2106, C.E.P.R. Discussion Papers.
  8. Hartog, Joop & Oosterbeek, Hessel, 1993. "Public and private sector wages in the Netherlands," European Economic Review, Elsevier, Elsevier, vol. 37(1), pages 97-114, January.
  9. Hans-Werner Sinn, 1995. "Staggering along: wages policy and investment support in East Germany," The Economics of Transition, The European Bank for Reconstruction and Development, The European Bank for Reconstruction and Development, vol. 3(4), pages 403-426, December.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Robert Orlowski & Regina T. Riphahn, 2007. "Seniority in Germany: New Evidence on Returns to Tenure for Male Full-time Workers," Working Papers, Bavarian Graduate Program in Economics (BGPE) 036, Bavarian Graduate Program in Economics (BGPE).
  2. repec:iab:iabzaf:v:41:i:2/3:p:139-155 is not listed on IDEAS

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:bla:manchs:v:75:y:2007:i:4:p:422-444. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.