Beschäftigungsanpassung in Ost- und Westdeutschland : eine makroökonometrische Analyse für die deutschen Bundesländer (Employment adjustment in eastern and western Germany * a macroeconometric analysis for the German Länder)
"Despite the currently improving economic forecasts, the present labour market situation in Germany does not look too good. Especially the high and further increasing unemployment in eastern Germany is a key problem for current economic policy. Rigidities on the labour market, which manifest themselves among other things in wage setting which is not adjusted to the market situation, is partly to blame for that. On the basis of an empirical analysis for the German Länder for the period of 1970 to 2002, this article explores the role played by wage setting in the development of employment. One of the findings is that the rapid wage adjustment in eastern Germany in the first half of the 1990s is responsible to a high degree for the poor labour market development." (author's abstract, IAB-Doku) ((en))
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