20 years after the fall of the Berlin Wall: Regional unemployment in Eastern Germany
20 years after the fall of the Berlin Wall there is still a strong division between the economies and labour markets of eastern and western Germany. In the last few years, however, unemployment has been reduced especially in the East, even in times of economic crisis. Within eastern Germany a strong variation of labour market situations is visible, which has been relatively stable in time. A centre-periphery-structure can be understood by those approaches of regional economics which have the property of path dependency like the New Economic Geography. In the paper the development of unemployment is analysed in a spatial econometrics framework which uses a three-equations background (in the spirit of Elhorst). The results show convergence processes (beta- and sigma-convergence) which are not very strong. An industry structure with an emphasis on manufacturing helps to reduce unemployment. In the analysis spatial autocorrelation is revealed of being significant.
|Date of creation:||Sep 2011|
|Date of revision:|
|Contact details of provider:|| Postal: Welthandelsplatz 1, 1020 Vienna, Austria|
Web page: http://www.ersa.org
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa10p935. 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: (Gunther Maier)
If references are entirely missing, you can add them using this form.