Arbeitspapier

Distribution dynamics of regional GDP per employee in unified Germany

We investigate to what extent convergence in production levels per worker has been achieved in Germany since unification. To this end, we model the distribution of GDP per employee across German districts using two-component normal mixtures. While in the first year after unification, the two component distributions were clearly separated and bimodal, corresponding to the East and West German districts, respectively, in the following years they started to merge showing only one mode. Still, using the recently developed EM-Test for homogeneity in normal mixtures, the hypothesis of just a single normal component for the whole distribution is clearly rejected for all years. A Posterior analysis shows that about half of the East German districts were assigned to the richer component in 2006, thus catching up to levels of the West. The growth rate of a mover district is about one percentage point higher than the growth rate of a non-mover district which had the same initial level of GDP per employee.

Language
Englisch

Bibliographic citation
Series: Diskussionsbeitrag ; No. 461

Classification
Wirtschaft
Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
Subject
Regional convergence
distribution dynamics
mixture models
Germany
Regionale Entwicklung
Entwicklungskonvergenz
Sozialprodukt
Schätzung
Neue Bundesländer
Alte Bundesländer
Deutschland

Event
Geistige Schöpfung
(who)
Vollmer, Sebastian
Holzmann, Hajo
Ketterer, Florian
Klasen, Stephan
Event
Veröffentlichung
(who)
Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät
(where)
Hannover
(when)
2010

Handle
Last update
10.03.2025, 11:41 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Arbeitspapier

Associated

  • Vollmer, Sebastian
  • Holzmann, Hajo
  • Ketterer, Florian
  • Klasen, Stephan
  • Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät

Time of origin

  • 2010

Other Objects (12)