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German labour markets after unification

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  • Franz, Wolfgang

Abstract

This paper contains a description and analysis of the labour market in East Germany and an econometric evaluation of some effects of German unification on the West German labour market. At the outset, recent developments of employment and unemployment in East Germany are summarized together with an attempt at evaluation of the sources of joblessness. Moreover,'wage determination and wage dynamics are discussed at some length. It is investigated to what extent wage theories can contribute to an explanation of wage formation in East Germany. Finally, a macroeconometric rationing model based on the smoothing by aggregation-method is applied to obtain some educated guess estimates of effects stemming from increased imports of East Germany from West Germany for example.

Suggested Citation

  • Franz, Wolfgang, 1991. "German labour markets after unification," Discussion Papers, Series II 162, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
    • Handle: RePEc:zbw:kondp2:162
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    References listed on IDEAS

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    1. George A. Akerlof & Janet L. Yellen, 1990. "The Fair Wage-Effort Hypothesis and Unemployment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 105(2), pages 255-283.
    2. Michael Burda & Michael Funke, 1993. "German trade unions after unification — Third degree wage discriminating monopolists?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 129(3), pages 537-560, September.
    3. repec:diw:diwwpp:dp25 is not listed on IDEAS
    4. George A. Akerlof & Andrew K. Rose & Janet L. Yellen & Helga Hessenius, 1991. "East Germany in from the Cold: The Economic Aftermath of Currency Union," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(1), pages 1-106.
    5. Donges, Juergen Bernardo, 1991. "Arbeitsmarkt und Lohnpolitik in Ostdeutschland," Wirtschaftsdienst – Zeitschrift für Wirtschaftspolitik (1949 - 2007), ZBW - Leibniz Information Centre for Economics, vol. 71(6), pages 283-291.
    6. International Monetary Fund, 1990. "German Unification; Economic Issues Occasional Paper No. 75," IMF Occasional Papers 1990/008, International Monetary Fund.
    7. Burda, Michael C, 1990. "The Consequences of German Economic and Monetary Union," CEPR Discussion Papers 449, C.E.P.R. Discussion Papers.
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    Cited by:

    1. Rudiger Dornbusch & Holger C. Wolf, 1994. "East German Economic Reconstruction," NBER Chapters, in: The Transition in Eastern Europe, Volume 1, Country Studies, pages 155-190, National Bureau of Economic Research, Inc.
    2. Fahr, René & Sunde, Uwe, 2001. "Strategic Hiring Behavior in Empirical Matching Functions," IZA Discussion Papers 320, Institute of Labor Economics (IZA).
    3. David Begg & Richard Portes, 1993. "Eastern Germany since unification: wage subsidies remain a better way," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 1(4), pages 383-400, December.
    4. Haucap, Justus & Pauly, Uwe & Wey, Christian, 2001. "Collective wage setting when wages are generally binding An antitrust perspective," International Review of Law and Economics, Elsevier, vol. 21(3), pages 287-307, September.
    5. Büttner, Thiess, 1994. "The new Laender as an industry location in unified Germany," Discussion Papers 16, University of Konstanz, Center for International Labor Economics (CILE).

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