East Germany underwent rapid transition from a socialist to a market economy since the fall of the Berlin Wall. We are interested in whether women are better off or worse off relative to men as a result of this transition. We use the German Socio-Economic Panel Data 1990-1997 to study wage determination and implement a decomposition analysis which accounts for selection bias issues. Our analysis shows that even though the gender wage gap is shrinking, discrimination is not.
employment gender hours transition in labor markets wages