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Wages in the East German Transition Process: Facts and Explanations

Author

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  • Franz Wolfgang
  • Steiner Viktor

    (Zentrum für Europäische Wirtschaftsforschung, Mannheim, Germany)

Abstract

We analyze wage developments in the East German transition process both at the macro- and at the microeconomic level. At the macroeconomic level, we draw special attention to the important distinction between product and consumption wages, describe the development of various wage measures, labor productivity and unit labor costs in East Germany in relation to West Germany, and relate these developments to the system of collective wage bargaining. At the microeconomic level, we describe changes in the distribution of hourly wages between 1990 and 1997 and analyze the economic factors determining these changes by way of empirical wage functions estimated on the basis of the Socio- Economic Panel for East Germany. The paper also draws some conclusions on the likely future course of the East-West German wage convergence process.

Suggested Citation

  • Franz Wolfgang & Steiner Viktor, 2000. "Wages in the East German Transition Process: Facts and Explanations," German Economic Review, De Gruyter, vol. 1(3), pages 241-269, August.
    • Handle: RePEc:bpj:germec:v:1:y:2000:i:3:p:241-269
    DOI: 10.1111/1468-0475.00013
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    Citations

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    Cited by:

    1. Orlowski, Robert & Riphahn, Regina T., 2008. "The East German Wage Structure after Transition," IZA Discussion Papers 3861, Institute of Labor Economics (IZA).
    2. Stefan Bach & Giacomo Corneo & Viktor Steiner, 2007. "From Bottom to Top: The Entire Distribution of Market Income in Germany, 1992-2001," SOEPpapers on Multidisciplinary Panel Data Research 51, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. Markus M. Grabka & Ursina Kuhn, 2012. "The Evolution of Income Inequality in Germany and Switzerland since the Turn of the Millennium," SOEPpapers on Multidisciplinary Panel Data Research 464, DIW Berlin, The German Socio-Economic Panel (SOEP).
    4. Orlowski, Robert & Riphahn, Regina T., 2008. "Seniority in Germany: New evidence on returns to tenure for male full-time workers," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(2/3), pages 139-155.
    5. Brück, Tilman & Peters, Heiko, 2009. "20 years of German unification: Evidence on income convergence and heterogeneity," Working Papers 03/2009, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung.
    6. Orlowski, Robert & Riphahn, Regina T., 2008. "Seniority in Germany: New evidence on returns to tenure for male full-time workers," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(2/3), pages 139-155.
    7. Merkl, Christian & Snower, Dennis J., 2008. "Escaping the unemployment trap: The case of East Germany," Journal of Comparative Economics, Elsevier, vol. 36(4), pages 542-556, December.
    8. Orlowski, Robert & Riphahn, Regina T., 2008. "Seniority in Germany: New evidence on returns to tenure for male full-time workers," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(2/3), pages 139-155.
    9. repec:zbw:ifwkwp:1309 is not listed on IDEAS
    10. Ira N. Gang & Robert C. Stuart & Myeong-Su Yun, 2006. "Wage Growth and Inequality Change During Rapid Economic Transition," Departmental Working Papers 200631, Rutgers University, Department of Economics.
    11. Petrik Runst, 2011. "Post-Socialist Culture and Entrepreneurship," SOEPpapers on Multidisciplinary Panel Data Research 373, DIW Berlin, The German Socio-Economic Panel (SOEP).
    12. Kroker, Rolf, 2000. "Zehn Jahre Aufbau Ost: Erfolge, Defizite und Reformbedarf," IW-Trends – Vierteljahresschrift zur empirischen Wirtschaftsforschung, Institut der deutschen Wirtschaft (IW) / German Economic Institute, vol. 27(3), pages 42-76.
    13. Heike Trappe & Annemette Sørensen, 2005. "Economic Relations between Women and Their Partners: An East-West-German Comparison after Reunification," Discussion Papers of DIW Berlin 544, DIW Berlin, German Institute for Economic Research.
    14. Heike Trappe & Annemette Sørensen, 2006. "Economic Relations Between Women And Their Partners: An East And West German Comparison After Reunification," Feminist Economics, Taylor & Francis Journals, vol. 12(4), pages 643-665.

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