Publication

This paper concentrates on the question of whether the low level of productivity in East Germany can be explained by deficits in the stock of human capital. The author finds that the human capital endowment of the East German economy is lower than in West Germany and that it will further deteriorate as a result of selective migration and unfavorable educational attendance of the younger cohorts. The author concludes that this impedes a fast convergence in productivity between East and West Germany.