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Title:Wage Convergence and Inequality after Unification: (East) Germany in Transition PDF Logo
Authors:Gernandt, Johannes
Pfeiffer, Friedhelm
Issue Date:2008
Series/Report no.:ZEW Discussion Papers 08-022
Abstract:This paper investigates the wage convergence between East German workers and their West German counterparts after reunification. Our research is based on a comparison of three groups of workers defined as stayers, migrants and commuters to West Germany, who lived in East Germany in 1989, with groups of West German statistical twin workers, all taken from the Socio-Economic Panel (SOEP). According to our findings, wage convergence for stayers is roughly 75 percent and for commuters 85 percent. Wages of migrants to West Germany equal the ones of their West German statistical twins. We conclude that labor markets in East and West Germany are still characterized by wage differences but that the degree of inequality in both regions converged.
Subjects:Wage convergence
wage inequality
German unification
migration
commuting
JEL:J30
J31
J61
Document Type:Working Paper
Appears in Collections:ZEW Discussion Papers
Publikationen von Forscherinnen und Forschern des ZEW

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