Eastern Germany and the Conflict between Wage Adjustment, Investment and Employment: A Numerical Analysis

Christian Thimann () and Breitner, M-H

Working Papers from American Institute for Contemporary German Studies-

Abstract: Four years after German unification, the economy in eastern Germany has by far still not caught up with the one in western Germany. While wages are close to the western level, productivity and capital stock are still low and unemployment is high. In this paper some light is shed on the dynamics of the adjustment process by studying the linkages between the dynamics of wage adjutment, investment and employment.

Keywords: GERMANY; WAGE DETERMINATION; EMPLOYMENT; INVESTMENTS (search for similar items in EconPapers)
JEL-codes: E22 E24 J31 (search for similar items in EconPapers)
Date: 1995

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Journal Article: Eastern Germany and the conflict between wage adjustment, investment, and employment: A numerical analysis (1995)
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