Publication
Jul 2008
This paper addresses the functioning of East Germany's labor market since German reunification in 1990, identifying causes for the persistently high unemployment levels. It looks at the fast wage adjustment after reunification, models the resulting labor market reactions and provides empirical evidence. The authors argue that East German unemployment arose because East German wages adjusted much faster than East German productivity to their West German counterparts.
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English (PDF, 22 pages, 177 KB) |
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Author | Christian Merkl, Dennis Snower |
Series | Kiel Institute Working Papers |
Issue | 1435 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2008 Kiel Institute for the World Economy |