Journal (Complete Issue)

ifo Dresden berichtet 2/2016


ifo Institut, Dresden, 2016

What explains the wage differences between East and West Germany?

Even more than 25 years after German unification, there are still strong wage differences between East and West Germany. With the help of linked employer-employee data, 40% of the east-west wage gap observed in 2010 can be attributed to structural differences in personal, company and regional characteristics. The differences in company size and prices between East and West Germany are particularly significant. The higher labour force participation of women and the lower level of collective bargaining in eastern Germany also contribute to the wage gap. Since many of the factors identified are not directly influenced by economic policy, it is unlikely that wages in eastern and western Germany will be adjusted rapidly in the future.

Kluge, Jan and Weber, Michael

Articles included

Article in Journal
Jan Kluge, Michael Weber
ifo Institut, Dresden, 2016
in: ifo Dresden berichtet, 2016, 23, Nr. 02, 03-09
Article in Journal
David Bauer, Carolin Fritzsche, Johannes Steinbrecher
ifo Institut, Dresden, 2016
ifo Dresden berichtet, 2016, 23, Nr. 02, 10-14
Article in Journal
Maik Grundmann
ifo Institut, Dresden, 2016
in: ifo Dresden berichtet, 2016, 23, Nr. 02, 15-21
Article in Journal
Robert Lehmann, Michael Weber
ifo Institut, Dresden, 2016
ifo Dresden berichtet, 2016, 23, Nr. 02, 22-26
Article in Journal
Michael Weber
ifo Institut, Dresden, 2016
in: ifo Dresden berichtet, 2016, 23, Nr. 02, 27-29

Article in Journal
Michael Weber
ifo Institut, Dresden, 2016
in: ifo Dresden berichtet, 2016, 23, Nr. 02, 30-32