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Establishment Survival in East and West Germany: A Comparative Analysis

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  • Daniel Fackler

Abstract

Using a large administrative dataset, this paper compares the development of new establishments’ survival chances in East and West Germany for the period 1994 - 2008. A central question is whether convergence with respect to survival rates between East and West Germany can be observed. Using methods of survival analysis, I find that new establishments’ survival chances do not differ strongly between East and West Germany at the beginning of the observation period. In 1998 and 1999 the exit hazard increases strongly in East but not in West Germany, which is likely to be due to a change in the subsidy policy affecting East Germany. Since the turn of the millennium, the difference in establishments’ exit hazard between East and West Germany becomes smaller, indicating that there is convergence with respect to establishments’ survival chances. / Anhand umfangreicher administrativer Daten vergleicht diese Studie die Entwicklung der Überlebenschancen neu gegründeter Betriebe in West- und Ostdeutschland für die Jahre 1994 bis 2008. Eine zentrale Frage lautet dabei, ob eine Angleichung der Überlebensraten zwischen West- und Ostdeutschland zu beobachten ist. Anhand von Methoden der Verweildaueranalyse kommt die Studie zu dem Ergebnis, dass sich die Überlebenschancen neu gegründeter Betriebe zu Beginn des Beobachtungszeitraums nicht stark zwischen West- und Ostdeutschland unterscheiden. In den Jahren 1998 und 1999 steigt die Schließungswahrscheinlichkeit in Ostdeutschland stark an, in Westdeutschland jedoch nicht, was vermutlich auf eine Änderung der Subventionspolitik für Betriebe in Ostdeutschland zurückzuführen ist. Seit der Jahrtausendwende nimmt der Unterschied in den Schließungswahrscheinlichkeiten zwischen West- und Ostdeutschland ab, was auf eine Angleichung der Überlebenschancen hindeutet.

Suggested Citation

  • Daniel Fackler, 2014. "Establishment Survival in East and West Germany: A Comparative Analysis," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 134(2), pages 183-208.
  • Handle: RePEc:dah:aeqsjb:v134_y2014_i2_q2_p183-208
    DOI: 10.3790/schm.134.1.183
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    Citations

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    Cited by:

    1. Schnabel Claus, 2016. "United, Yet Apart? A Note on Persistent Labour Market Differences between Western and Eastern Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 236(2), pages 157-179, March.
    2. Hirsch, Boris & Merkl, Christian & Müller, Steffen & Schnabel, Claus, 2014. "Centralized vs. decentralized wage formation: The role of firms' production technology," Kiel Working Papers 1927, Kiel Institute for the World Economy (IfW Kiel).
    3. Kuehnle, Daniel & Oberfichtner, Michael, 2017. "Does early child care attendance influence children's cognitive and non-cognitive skill development?," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168241, Verein für Socialpolitik / German Economic Association.
    4. Boris HirschBy & Daniel S. J. Lechmann & Claus Schnabel, 2017. "Coming to work while sick: an economic theory of presenteeism with an application to German data," Oxford Economic Papers, Oxford University Press, vol. 69(4), pages 1010-1031.
    5. Eberle, Johanna & Schmucker, Alexandra, 2017. "The establishment History Panel : Redesign and update 2016," FDZ Methodenreport 201703_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. repec:iab:iabfme:201703(en is not listed on IDEAS
    7. Eberle Johanna & Schmucker Alexandra, 2017. "The Establishment History Panel – Redesign and Update 2016," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 237(6), pages 535-547, December.

    More about this item

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • P27 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Performance and Prospects
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies

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