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Jahrbücher für Nationalökonomie und Statistik

Journal of Economics and Statistics

Editor-in-Chief: Winker, Peter

Ed. by Franz, Wolfgang / Riphahn, Regina / Smolny, Werner / Wagner, Joachim


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

1Universität Erlangen-Nürnberg, Lehrstuhl für Arbeitsmarkt- und Regionalpolitik, Lange Gasse 20, 90403 Nürnberg, Germany

Citation Information: Jahrbücher für Nationalökonomie und Statistik. Volume 236, Issue 2, Pages 157–179, ISSN (Online) 2366-049X, ISSN (Print) 0021-4027, DOI: https://doi.org/10.1515/jbnst-2015-1012, February 2016

Publication History

Published Online:
2016-02-16

This article offers supplementary material which is provided at the end of the article.

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: labour market disparities; German unification; transition; Germany

JEL Classification: J01; J20; J30; J50; P27

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