Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/230007 
Year of Publication: 
2020
Citation: 
[Journal:] Economics of Transition and Institutional Change [ISSN:] 2577-6983 [Volume:] 28 [Issue:] 3 [Publisher:] Wiley [Place:] Hoboken, NJ [Year:] 2020 [Pages:] 413-440
Publisher: 
Wiley, Hoboken, NJ
Abstract: 
Using German administrative data, we study across-regime low-pay persistence in the context of an economic transformation process. We first show that individuals' initial allocation to the post-unification low-wage sector was close to random in terms of market-regime unobservables. Consistent with a weak connection between individuals' true productivity and their pre-unification low-wage status, the extent of across-regime state dependence is found to be small and appears to vanish over time. For males, across-regime state dependence is most pronounced among the medium- and high-skilled, suggesting the depreciation of human capital as an explanation.
Subjects: 
economic transition
human capital
low‐pay dynamics
state dependence
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article
Document Version: 
Published Version

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