Skills, Wages and Employment in Eastern and Western Germany

Felix Fitzroy and Michael Funke

CRIEFF Discussion Papers from Centre for Research into Industry, Enterprise, Finance and the Firm

Abstract: Disaggregated data from 30 two-digit manufacturing industies in the Eastern and Western parts of unified Germany are used to estimate employment from three skill categories of blue collar workers. Employment elasticities are uniformly higher in the East, and for unskilled labour. The former contradicts union claims that wages had little relevance for Eastern job losses, while the latter confirms the capital-skill complementarity hypothesis.

Keywords: skills; wages; employment (search for similar items in EconPapers)
JEL-codes: J31 (search for similar items in EconPapers)
Date: 1994-10
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:san:crieff:9422

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