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Long-Lasting Labour Market Consequences of German Unification

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Listed:
  • Blien Uwe

    ()

  • Möller Joachim

    ()

  • Hong Van Phan thi

    (Institute for Employment Research (IAB), Regensburger Str. 104, 90478 Nuremberg, Germany)

  • Brunow Stephan

Abstract

This article shows how the impulses of the transformation process in eastern Germany have spread through the economy and the labour market. The form of transformation has long-term effects on the form of control over the economy; it is managed largely from western firms. This fact has manifold consequences for the innovation behaviour of plants, among others, which in turn is further related to productivity and thus to the labour market. We argue that this transfers further to persistently lower wages and higher unemployment rates in eastern compared with western Germany.

Suggested Citation

  • Blien Uwe & Möller Joachim & Hong Van Phan thi & Brunow Stephan, 2016. "Long-Lasting Labour Market Consequences of German Unification," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 236(2), pages 181-216, March.
  • Handle: RePEc:jns:jbstat:v:236:y:2016:i:1:p:158-181
    as

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    References listed on IDEAS

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    Cited by:

    1. Pfeifer Christian & Smolny Werner & Wagner Joachim, 2016. "25 Years of German Reunification," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 236(2), pages 153-155, March.

    More about this item

    Keywords

    German unification; regional unemployment; regional wage dynamics; wage inequality; wage curve; regional development; innovation; industrial structure; patents;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • P31 - Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

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