Long-Lasting Labour Market Consequences of German Unification

Uwe Blien (), Joachim Möller, Hong Van Phan thi and Stephan Brunow
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Hong Van Phan thi: Institute for Employment Research (IAB), Regensburger Str. 104, 90478 Nuremberg, Germany

Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), 2016, vol. 236, issue 2, 181-216

Abstract: This article shows how the impulses of the transformation process in eastern Germany have spread through the economy and the labour market. The form of transformation has long-term effects on the form of control over the economy; it is managed largely from western firms. This fact has manifold consequences for the innovation behaviour of plants, among others, which in turn is further related to productivity and thus to the labour market. We argue that this transfers further to persistently lower wages and higher unemployment rates in eastern compared with western Germany.

Keywords: German unification; regional unemployment; regional wage dynamics; wage inequality; wage curve; regional development; innovation; industrial structure; patents (search for similar items in EconPapers)
JEL-codes: J31 P31 R23 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Long-lasting Labour Market Consequences of German Unification (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:jns:jbstat:v:236:y:2016:i:1:p:158-181

DOI: 10.1515/jbnst-2015-1013

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