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The Transition in East Germany: When Is a Ten-Point Fall in the Gender Wage Gap Bad News?

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  • Jennifer Hunt

    (University of Montreal)

Abstract

The gender wage gap in East Germany has narrowed by 10 percentage points in transition, but women have experienced much more severe employment difficulties than men. Using the German Socio-Economic Panel for 199094, I show that on balance women have lost relative to men. Almost half the relative wage gain is due to exits from employment of the low skilled, who are disproportionately women. The female employment decline is not primarily voluntary: more than half the gender gap in the hazard rate from employment reflects a general fall in demand for low-skilled workers. Reduced child care plays no role.

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Bibliographic Info

Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 20 (2002)
Issue (Month): 1 (January)
Pages: 148-169

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Handle: RePEc:ucp:jlabec:v:20:y:2002:i:1:p:148-169

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  1. Blau, Francine D & Kahn, Lawrence M, 1997. "Swimming Upstream: Trends in the Gender Wage Differential in 1980s," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages 1-42, January.
  2. Begg, David & Portes, Richard, 1992. "Eastern Germany Since Unification: Wage Subsidies Remain a Better Way," CEPR Discussion Papers 730, C.E.P.R. Discussion Papers.
  3. Viktor Steiner & Patrick A. Puhani, 1997. "Economic Restructuring, the Value of Human Capital, and the Distribution of Hourly Wages in Eastern Germany, 1990 to 1994," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 66(1), pages 197-204.
  4. Alan B. Krueger & Jorn-Steffen Pischke, 1992. "A Comparative Analysis of East and West German Labor Markets: Before and After Unification," NBER Working Papers 4154, National Bureau of Economic Research, Inc.
  5. Licht, Georg & Steiner, Viktor, 1992. "Where have all the workers gone? Employment termination in East Germany after unification," ZEW Discussion Papers 92-12, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  6. repec:wop:humbsf:1997-77 is not listed on IDEAS
  7. 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.
  8. Richard B. Freeman & Lawrence F. Katz, 1995. "Differences and Changes in Wage Structures," NBER Books, National Bureau of Economic Research, Inc, number free95-1.
  9. Rainer Pischner & Gert G. Wagner, 1995. "Bilanz der Erwerbschancen fünf Jahre nach der Wende in Ostdeutschland," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 62(46), pages 789-796.
  10. Wolfgang Scheremet, 1995. "Tarifpolitik in Ostdeutschland: Ausstieg aus dem Lohnverhandlungsmodell der Bundesrepublik Deutschland?," Discussion Papers of DIW Berlin 113, DIW Berlin, German Institute for Economic Research.
  11. Steiner, Viktor & Wagner, Kersten, 1997. "East West German wage convergence - How far have we got?," ZEW Discussion Papers 97-25, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  12. M. Burda & C. Schmidt, 1997. "Getting Behind The East-West Wage Differential: Theory and Evidence," SFB 373 Discussion Papers 1997,77, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
  13. Peter Krause, 1994. "Armut im Wohlstand: Betroffenheit und Folgen," Discussion Papers of DIW Berlin 88, DIW Berlin, German Institute for Economic Research.
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