A comparative analysis of East and West German labor markets before and after unification
This paper uses micro data to analyze the wage structures in East Germany and West Germany before and after unification. In 1988, the wage distribution in East Germany was much more compressed than in West Germany or in the U.S. Since the collapse of Communism and unification with West Germany, however, the wage structure in eastern Germany has changed considerably. In particular, wage variation has increased, the payoff to education has decreased slightly, industry differentials have expanded, and the white collar premium has increased. Although average wage growth has been remarkably high in eastern Germany, individual variation in wage growth is similar to typical western levels. The wage structure of east Germans who work in west Germany resembles the wage structure of native west Germans in some respects, but the experience-earnings profile is flat.
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- George A. Akerlof & Andrew K. Rose & Janet L. Yellen & Helga Hessenius, 1991. "East Germany in from the Cold: The Economic Aftermath of Currency Union," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(1), pages 1-106.
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in: Differences and Changes in Wage Structures, pages 371-404
National Bureau of Economic Research, Inc.
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- Katharine G. Abraham & Susan N. Houseman, 1993. "Earnings Inequality in Germany," NBER Working Papers 4541, National Bureau of Economic Research, Inc.
- Katharine G. Abraham & Susan N. Houseman, 1993. "Earnings Inequality in Germany," Upjohn Working Papers and Journal Articles 94-24, W.E. Upjohn Institute for Employment Research.
- repec:cup:cbooks:9780521433297 is not listed on IDEAS
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NBER Working Papers
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- Jean Helwege & Joachim Wagner, 1991. "More on the international similarity of interindustry wage differentials: evidence from the Federal Republic of Germany and the U.S," Finance and Economics Discussion Series 167, Board of Governors of the Federal Reserve System (U.S.).
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- Bergson, Abram, 1984. "Income Inequality under Soviet Socialism," Journal of Economic Literature, American Economic Association, vol. 22(3), pages 1052-99, September.
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