United, Yet Apart? A Note on Persistent Labour Market Differences between Western and Eastern Germany

Claus Schnabel

No 8919, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Comparing aggregate statistics and surveying selected empirical studies, this paper shows that the characteristics and results of labour markets in eastern and western Germany have become quite similar in some respects but still differ markedly in others even 25 years after unification. Whereas no substantial differences can be detected in firms' labour demand decisions and in employees' representation via works councils or trade unions, both parts of the country are somewhat apart concerning labour supply behaviour, labour productivity, wages, and bargaining coverage, and they still exhibit substantially different rates of unemployment. These differences may reflect observable and unobservable characteristics of economic actors as well as differences in behaviour, norms, and individuals' attitudes.

Keywords: transition; Germany; German unification; labour market disparities (search for similar items in EconPapers)
JEL-codes: J01 J20 J30 J50 P27 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2015-03
New Economics Papers: this item is included in nep-lma and nep-tra
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Citations: View citations in EconPapers (8)

Forthcoming - published in: Journal of Economics and Statistics (Jahrbücher für Nationalökonomie und Statistik), 2016, 236 (2), 157-180

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Related works:
Journal Article: United, Yet Apart? A Note on Persistent Labour Market Differences between Western and Eastern Germany (2016)
Working Paper: United, yet apart? A note on persistent labour market differences between Western and Eastern Germany (2015)
Working Paper: United, yet apart? A note on persistent labour market differences between Western and Eastern Germany (2015)
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