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Title:Minimum Wages and Employment: The Case of German Unification PDF Logo
Authors:Heitger, Bernhard
Issue Date:2001
Series/Report no.:Kieler Arbeitspapiere 1045
Abstract:Analysis in terms of the two-sector open economy shows that in bringing the market economy to East Germany, West Germany seems to have disregarded important fundamentals. Premature formation of a currency union led to a substantial real appreciation of the East German currency. Premature implementation of the West German system of wage bargaining resulted in inappropriate minimum wage schedules. Both measures made East German production possibilities and employment decline.
Subjects:Minimum Wages
Employment
German Unification
JEL:P23
E24
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des IfW
Kieler Arbeitspapiere, IfW

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