The German economy is not only affected by unification of Germany but by a significant influx of immigrants from abroad and huge migration from East to West Germany around the date of unification. Data from the German Socio-Economic Panel Study (GSOEP) allows one to disentangle those effects by decomposition of the Theil I(0)-Index of inequality. In addition, the paper offers insights into the transition from a socalist economy into a market oriented one.
Decomposable inequality measure Economics of transition Economic impact of immigration
NOTICE: This is the author’s version of a work that was accepted for publication in the European Economic Review. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in the European Economic Review 43 (1999), 4-6, pp. 867-878 and is online available at http://dx.doi.org/10.1016/S0014-2921(98)00100-7.