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Human capital, job tasks and technology in East Germany after reunification

Author

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  • Alexandra Spitz-Oener

    (Department of Business and Economics, Humboldt-University, Berlin)

Abstract

At the time of the fall of the Berlin Wall, employees in East Germany were at least as well educated as employees in West Germeny in terms of formal educational qualifications. However, it is unclear to what extent the skills and knowledge acquired through the East German education system, adn through employment in a socialist labour market, are transferable to the new market-based economy. This study aims to shed light on this issue by giving a comprehensive description of the work of those employees who remained employed after the first phase of restructuring (i.e. in 1991) in East Germany, and comparing it with work in West Germany. Overall, the similarity between workplaces in East and West Germany soon after reunicication is striking. In addition, the patterns of task changes between 1991 and 1999 were bery similar in both parts of Germany. Neither the level of task inputs in1991 nor the changes in task inputs between1991 and 1999 were driven by cohort effects, a surprising finding given how differently the age groups were affected by the historical event. The Largest difference between the east and the west exists in terms of wprkplace computerisation. Although East Germany has caught up rapidly, it was still laggin behind the west in terms of computer use in 1999.

Suggested Citation

  • Alexandra Spitz-Oener, 2007. "Human capital, job tasks and technology in East Germany after reunification," National Institute Economic Review, National Institute of Economic and Social Research, vol. 201(1), pages 97-106, July.
    • Handle: RePEc:sae:niesru:v:201:y:2007:i:1:p:97-106
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    Cited by:

    1. Fuchs-Schündeln, Nicola & Izem, Rima, 2012. "Explaining the low labor productivity in East Germany – A spatial analysis," Journal of Comparative Economics, Elsevier, vol. 40(1), pages 1-21.
    2. Robert Orlowski & Regina T. Riphahn, 2008. "The East German Wage Structure after Transition," SOEPpapers on Multidisciplinary Panel Data Research 148, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. Robert Orlowski & Regina T. Riphahn, 2009. "The East German wage structure after transition1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 17(4), pages 629-659, October.

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