IDEAS home Printed from https://ideas.repec.org/a/mes/postke/v29y2007i4p601-619.html
   My bibliography  Save this article

Explaining persistent unemployment in eastern Germany

Author

Listed:
  • John Hall
  • Udo Ludwig

Abstract

Relatively high rates of persistent unemployment plaguing the eastern region of Germany are argued to be caused especially by two factors engendering slack labor demand relative to supply. Demand for East German labor declined as (1) rapid privatization was followed by cross-regional capital flows, resulting in high levels of capital intensity and a dramatic shedding of labor. Reindustrialization and service-sector expansion proved too weak to generate sufficient labor demand. (2) Related to privatization, business headquarters moved to the west of Germany, resulting in a notable pattern of reindustrialization and the eastern region's specialization in intermediates vis-à-vis finished goods, engendering weak labor demand.

Suggested Citation

  • John Hall & Udo Ludwig, 2007. "Explaining persistent unemployment in eastern Germany," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 29(4), pages 601-619.
  • Handle: RePEc:mes:postke:v:29:y:2007:i:4:p:601-619
    DOI: 10.2753/PKE0160-3477290404
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2753/PKE0160-3477290404
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. Christian Merkl & Dennis Snower, 2008. "East German unemployment: the myth of the irrelevant labor market," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 31(1), pages 151-165, September.
    2. Juan Carlos Martinez Oliva, 2009. "Riunificazione intertedesca e politiche per la convergenza," Mo.Fi.R. Working Papers 14, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:postke:v:29:y:2007:i:4:p:601-619. 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: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/MPKE20 .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.