Arbeitspapier

Wage Convergence and Inequality after Unification: (East) Germany in Transition

This paper investigates the wage convergence between East German workers and their West German counterparts after reunification. Our research is based on a comparison of three groups of workers defined as stayers, migrants and commuters to West Germany, who lived in East Germany in 1989, with groups of West German statistical twin workers, all taken from the Socio-Economic Panel (SOEP). According to our findings, wage convergence for stayers is roughly 75 percent and for commuters 85 percent. Wages of migrants to West Germany equal the ones of their West German statistical twins. We conclude that labor markets in East and West Germany are still characterized by wage differences but that the degree of inequality in both regions converged.

Sprache
Englisch

Erschienen in
Series: SOEPpapers on Multidisciplinary Panel Data Research ; No. 107

Klassifikation
Wirtschaft
Wage Level and Structure; Wage Differentials
Wages, Compensation, and Labor Costs: General
Geographic Labor Mobility; Immigrant Workers
Thema
Wage convergence
wage inequality
German unification
migration
commuting

Ereignis
Geistige Schöpfung
(wer)
Gernandt, Johannes
Pfeiffer, Friedhelm
Ereignis
Veröffentlichung
(wer)
Deutsches Institut für Wirtschaftsforschung (DIW)
(wo)
Berlin
(wann)
2008

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Gernandt, Johannes
  • Pfeiffer, Friedhelm
  • Deutsches Institut für Wirtschaftsforschung (DIW)

Entstanden

  • 2008

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