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Title:The unification bonus (malus) in postwall Eastern Germany PDF Logo
Authors:Beblo, Miriam
Collier, Irwin L.
Knaus, Thomas
Issue Date:2001
Series/Report no.:ZEW Discussion Papers 01-29
Abstract:This paper presents estimates of the unification bonus for East Germans over the period 1991 to 1998. The unification bonus is defined as the discounted value of the difference between a person?s actual income and his or her counterfactual real income stream forecast for a hypothetical continuation of economic life in a static GDR. The two main issues tackled in this study are the construction of valid deflators for a comparison of real incomes during the transition from a centralized to a market economy and the estimation of plausible counterfactual income streams. Our central result is that 19 percent of East Germans received a present value malus and so can be regarded as unification losers but that the aggregate bonus is ten times the size of the aggregate malus of the sample.
Subjects:Real income comparison
income distribution and mobility
economies in transition
JEL:D3
D1
P2
Document Type:Working Paper
Appears in Collections:ZEW Discussion Papers
Publikationen von Forscherinnen und Forschern des ZEW

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