Wage Adjustment, Competitiveness and Unemployment – East Germany after Unification

2009 ◽  
Vol 229 (2-3) ◽  
Author(s):  
Werner Smolny
Keyword(s):  
Labor Market ◽  
East Germany ◽  
German Economy ◽  
West Germany ◽  
Relative Wage ◽  
Wage Setting ◽  
East And West Germany ◽  
Market Situation ◽  
East German ◽  
Wage Adjustment

SummaryNearly 20 years after unification large differences of the labor market situation in East and West Germany persist. Wages are still considerably lower, the unemployment rate is about twice of the West German level, and the competitiveness of the East German economy seems to be low. This paper analyzes the process of (relative) wage adjustment in East Germany and the resulting development of competitiveness and unemployment differentials. We present estimates of the wage adjustment in East vs. West Germany based on wage convergence and effects of unemployment on wage growth. The central focus of the paper is the empirical analysis of the interaction of the development of competitiveness and the labor market situation. The results reveal large equilibrium gaps for wages and unemployment which are based on the wage-setting process, the behavior of competitiveness and the adjustment of unemployment.

Catching-up of East German Labour Productivity in the 1990s

2000 ◽  
Vol 1 (3) ◽  
pp. 271-297 ◽  
Author(s):  
Ray Barrell ◽  
Dirk Willem te Velde
Keyword(s):  
East Germany ◽  
Labour Productivity ◽  
West Germany ◽  
Foreign Firms ◽  
Factors Affecting ◽  
East And West Germany ◽  
Catching Up ◽  
East German ◽  
East And West ◽  
Organization Of Production

Abstract We provide empirical evidence for exogenous and endogenous catching-up of East German labour productivity to West German levels. We argue that labour productivity in East Germany has caught up faster than has happened elsewhere. The sudden formation of the German Monetary Union was followed by large transfers to East Germany, migration of workers to West Germany, reorganization and privatization of East German firms. This has quickly led to a partial closing of the organizational, idea and object gaps that existed between East and West Germany. This paper analyses labour productivity in East and West Germany using both aggregate German data and unbalanced panel analysis of developments in East and West Germany. Factors affecting the organization of production, and especially privatization and `foreign' firms, are found to be particularly important in this context.

scholarly journals Hidden Behind the Wall: West German State Building and the Emergence of the Iron Curtain

2011 ◽  
Vol 44 (3) ◽  
pp. 506-535 ◽  
Author(s):  
Sagi Schaefer
Keyword(s):  
German Economy ◽  
State Building ◽  
West Germany ◽  
State Agencies ◽  
Iron Curtain ◽  
Berlin Wall ◽  
German State ◽  
East And West Germany ◽  
East German

It is widely accepted that the inter-German border was constructed by East German authorities to halt the emigration to the west, which had damaged the East German economy and undermined the East German state agencies' power. This article argues that this is an inaccurate understanding, which mistakenly treats perceptions and insights gained from studying the Berlin Wall as representative of the mostly rural border between East and West Germany. It emphasizes crucial transformations of frontier society during the 1950s, highlighting the important role of western as well as eastern policy in shaping them.

scholarly journals Denying Difference to the Post-Socialist Other: Bernhard Heisig and the Changing Reception of an East German Artist

2012 ◽  
Vol 2 ◽  
pp. 45-74
Author(s):  
April A. Eisman
Keyword(s):  
East Germany ◽  
West Germany ◽  
Eastern Bloc ◽  
German Unification ◽  
Federal Republic Of Germany ◽  
Post Colonial ◽  
East And West Germany ◽  
Before And After ◽  
East German

This article traces the reception of East German artist Bernhard Heisig’s life and art—first in East Germany and then in the Federal Republic of Germany before and after the Wall. Drawing on post-colonial and post-socialist scholarship, it argues that Heisig’s reception exemplifies a western tendency to deny cultural and ideological difference in what the post-socialist scholar Piotr Piotrowski calls the “close Other.” This denial of difference to artists from the eastern bloc has shaped western understandings of Heisig’s life and art since reunification. Once perceived as an intellectually engaged, political artist, both in East and West Germany, after the fall of the Wall and German unification, Heisig was reinterpreted as a traumatized victim of two dictatorships, distorting not only our understanding of the artist and his work, but also of the nature of art and the role of the artist in East Germany.

‘Another brick in the wall’. On the origins of nationalism in the ‘new’ federal states of Germany

2021 ◽  
Vol 13 (2) ◽  
pp. 87-125
Author(s):  
A. V. Belinskii ◽  
M. V. Khorol’skaya
Keyword(s):  
Democratic Party ◽  
East Germany ◽  
Local Population ◽  
German Economy ◽  
West Germany ◽  
Right Wing ◽  
Federal Republic Of Germany ◽  
Federal States ◽  
Wide Range ◽  
East German

A relatively broad support enjoyed by the populist and nationalist parties and movements (AfD, National Democratic Party of Germany, PEGIDA), as well as a higher rate of hate crimes in the eastern part of the Federal Republic of Germany raise a question on the nature of nationalism in this region. The present paper examines the causes of widespread xenophobic and nationalist sentiments in the ‘new’ federal states. To this end, the authors address a wide range of social-political and psychological factors, focusing on the historical roots and causes of the recent rise of nationalism in East Germany. Particularly, the authors show that the right-wing parties took advantage of popular frustration caused by the collapse of the East German economy after the country’s reunification and massive unemployment by putting all the blame on migrants. Nevertheless, the causes of growing xenophobia in East Germany were far from being solely economic. For example, the authors underline the role of the politics of memory in the GDR and primarily the approaches of its leaders to the issues of the Nazi past and their attempts to draw on the country’s history to shape a new national identity. However, the failure of the state to provide an unbiased view on the national history, rigid official ideology and its alienation from the popular demands have led to the growing nationalism in the GDR. Besides, a number of other aspects is pointed out which have also fostered xenophobic sentiments in this part of the country. Unlike West Germany which started to accept labour migrants from Italy, Turkey and Yugoslavia back in 1950s, the GDR saw few foreigners and contacts between them and local population were limited. As a result, the paper not only helps to create a more detailed image of the East German nationalism but also to identify the underlying causes of the growing popularity of right-wing populist parties and movements in the FRG, most notably, the unfinished process of the country’s reunification and structural imbalances between the ‘old’ and the ‘new’ federal states.

Wirtschaftswachstum und „neuer Arbeitsmarkt“ in Deutschland

2004 ◽  
Vol 48 (1) ◽  
Author(s):  
Armin Osmanovic
Keyword(s):  
Economic Growth ◽  
Labor Market ◽  
German Economy ◽  
West Germany ◽  
Lower Saxony ◽  
The Past ◽  
East And West Germany ◽  
East And West ◽  
High Level ◽  
Structurally Weak Regions

Economic growth and the “new labor market” in Germany. The persistent high level of unemployment in Germany is usually blamed on the country’s inflexible labor market. This article attempts to show that in Germany - as in comparable countries - employment is primarily determined by economic growth. However, the growth of the German economy has been lagging behind the European average for some time. The article briefly discusses why this has been the case. The study contradicts the widely held theory that the German labor market restricts economic growth, and instead advances the proposition that the German labor market has changed to such an extent over the past few years, that the term “new labor market” is indeed warranted. This “new labor market” is regionally differentiated, as will be shown at the hand of “Bundesländer” (Nuts I regions). In particular, differences emerge between East and West Germany, but economically successful regions (Baden-Württemberg) with low unemployment levels also differ from structurally weak regions (Lower Saxony) with regards to the “new labor market”.

Human Capital, Job Tasks and Technology in East Germany After Reunification

2007 ◽  
Vol 201 ◽  
pp. 97-106 ◽  
Author(s):  
Alexandra Spitz-Oener
Keyword(s):  
East Germany ◽  
Age Groups ◽  
West Germany ◽  
Historical Event ◽  
Berlin Wall ◽  
The West ◽  
Job Tasks ◽  
East And West Germany ◽  
East German ◽  
Surprising Finding

At the time of the fall of the Berlin Wall, employees in East Germany were at least as well educated as employees in West Germany in terms of formal educational qualifications. However, it is unclear to what extent the skills and knowledge acquired through the East German education system, and through employment in a socialist labour market, are transferable to the new market-based economy. This study aims to shed light on this issue by giving a comprehensive description of the work of those employees who remained employed after the first phase of restructuring (i.e. in 1991) in East Germany, and comparing it with work in West Germany. Overall, the similarity between workplaces in East and West Germany soon after reunicication is striking. In addition, the patterns of task changes between 1991 and 1999 were very similar in both parts of Germany. Neither the level of task inputs in1991 nor the changes in task inputs between 1991 and 1999 were driven by cohort effects, a surprising finding given how differently the age groups were affected by the historical event. The Largest difference between the east and the west exists in terms of workplace computerisation. Although East Germany has caught up rapidly, it was still lagging behind the west in terms of computer use in 1999.

Post-unification (East) German Documentary and the Contradictions of Identity

2015 ◽  
Author(s):  
Barton Byg
Keyword(s):  
West Germany ◽  
Berlin Wall ◽  
Post Cold War ◽  
East And West Germany ◽  
East German ◽  
Innovative Enterprise ◽  
East And West ◽  
The Individual

This chapter focuses on the three major themes that have helped make the integration between East and West German documentary filmmakers successful and have contributed new strengths to German independent documentary as a productive and innovative enterprise. It first illustrates the phenomenon of collaboration between filmmakers from both East and West Germany, which preceded the fall of the Berlin Wall and provides the basis for unique accomplishments in documentary. Then, partly based on these East–West collaborations, it discuss examples of German documentary's frequent explorations of non-European topics, which challenge the clear separation of European and non-European in both politics and film art. Here, the film collaborations between Helga Reidemeister and Lars Barthel will serve as a case study. Finally, also as a result of decades of experimentation with the nature of the film medium's presentation of ‘reality’, ‘history’, and the individual human subject, Thomas Heise's German ‘portrait film’ Barluschke (1997) is explored as an example of this defining quality of independent German documentary filmmaking in the context of the post-Cold War.

Salts, Sewage, and Sulfurous Air

2019 ◽  
pp. 125-158
Author(s):  
Astrid M. Eckert
Keyword(s):  
Water Pollution ◽  
Sulfur Dioxide ◽  
Ecological Restoration ◽  
Industrial Waste ◽  
Environmental Problem ◽  
East Germany ◽  
Environmental Problems ◽  
West Germany ◽  
German States ◽  
East German

This chapter addresses a typical borderland environmental problem—transboundary air and water pollution. During the 1970s and 1980s, rivers carried eastern industrial waste and sewage into West Germany; the wind blew sulfur dioxide both ways. Their environmental interdependency forced both German states to the negotiating table, eventually producing the ineffectual Environmental Accords of 1987. The western encounter with eastern pollution through the interface of the inter-German border confronted West German authorities with early signs of East Germany’s dissolution. While they failed to grasp the message, their experience with East German pollution and the futile diplomatic efforts to curb it nonetheless generated the knowledge about the nature and extent of the GDR’s environmental problems that became the prerequisite for the post-1990 ecological restoration of East Germany.

Geschlechtsspezifische Ost-West-Unterschiede im Erwerbsverlauf

2020 ◽  
Vol 69 (6-7) ◽  
pp. 445-466
Author(s):  
Dana Müller ◽  
Michaela Fuchs
Keyword(s):  
Labour Market ◽  
Gender Equality ◽  
East Germany ◽  
West Germany ◽  
Gender Inequalities ◽  
East And West Germany ◽  
Career Opportunities ◽  
Gender Specific Differences ◽  
East And West ◽  
Gender Specific

Zusammenfassung Dieser Beitrag beschreibt die Entwicklung geschlechtsspezifischer Ungleichheiten über die letzten drei Jahrzehnte in Ost- und Westdeutschland. Unterschiede zwischen beiden Regionen bestehen nach wie vor. Sie haben ihren Ursprung in den verschiedenen gesellschaftlichen Ansätzen der Gleichstellung der Geschlechter vor der Wiedervereinigung und den unterschiedlichen strukturellen Gegebenheiten am Arbeitsmarkt. Dennoch besitzen nach wie vor weder die Frauen in Westdeutschland noch in Ostdeutschland die gleichen Einkommens- und Karrierechancen wie Männer. Die Bemühungen des Staates, den Abbau geschlechtsspezifischer Ungleichheiten voranzutreiben, werden anhand der zahlreichen Maßnahmen der letzten Jahre sichtbar. Sie reichen aber noch nicht aus, wie die Zahlen im Beitrag zeigen. Abstract: Gender-specific Differences on the Labour Market in East and West Germany This article describes the development of gender inequalities over the last three decades in East and West Germany. There are still differences between the two regions. They have their origin in the different social concepts to gender equality before reunification and the different structural conditions on the labour market. Nevertheless, not only women in West Germany but also in East Germany still do not have the same income and career opportunities as men. The state’s efforts to promote the reduction of gender-specific inequalities are evident from the numerous measures taken in recent years. However, they are not yet sufficient.

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