"We analyze the relation between population aging and the decline of unemployment in East Germany for the years from 1996 to 2012. To this we scrutinize both a direct and an indirect effect of aging on unemployment. The direct effect includes a decomposition of the East German unemployment rate...

"After years of declining employment and high unemployment, the situation on the East German labour market changed profoundly in the middle of the 2000s. Given the more pronounced demographic change it is expected that in East Germany the recruitment of skilled workers will become more difficult...