Lohn- und Gehaltsunterschiede zwischen Ost- und Westdeutschland –Implikationen für die Angleichung des Rentenrechts

The article examines both the current state and past performance of the economic convergence process between east and west Germany with particular emphasis on the convergence of wages and salaries. In addition, the associated consequences regarding the harmonisation of the pension law between both areas are examined. The harmonisation planned by the German government is to be completed in 2025. The empirical analysis draws on the German Socio-Economic-Panel (GSOEP) and the Linked-Employer-Employee data (LIAB) and is mainly based on linear regression analysis. The results give some clear indications that the convergence process is not sufficiently advanced and, accordingly, that there is still a considerable wage gap between workers in east and west Germany – even when taking into account the most important factors influencing the convergence of wages and salaries. Thus, on average, a complete harmonisation of pension law would be to the disadvantage of employees in east Germany since their future pension entitlements will be systematically lower than that of employees in west Germany. Against this background, the articles examines whether the targeted harmonisation period is sufficient to finalise the process of wage convergence between east and west Germany, or whether the harmonisation period should be extended to give already implemented reform measures such as the national minimum wage or the strengthening of collective bargaining the chance to become fully effective.