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Long-lasting Labour Market Consequences of German Unification

Joachim Möller, Uwe Blien (), Phan thi Hong Van and Stephan Brunow

ERSA conference papers from European Regional Science Association

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: Regional Unemployment; Regional Wage Dynamics; Innovation; Human Capital (search for similar items in EconPapers)
JEL-codes: J24 J31 R12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ino and nep-tra
Date: 2015-10
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Journal Article: Long-Lasting Labour Market Consequences of German Unification (2016) Downloads
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