Germany has experienced a substantial influx of German immigrants from Eastern Europe after World War II and expects several million more as a consequence of the demise of socialism. This paper analyses the economic performance of ethnic German migrants to West Germany in comparison with native...

In Spring 1991, we argued that the centrepiece of German policy towards unification should be a universal, temporary wage subsidy in Eastern Germany and the elimination of all other subsidies. Subsequent events have strengthened the analytical case for and practical importance of this policy....

This paper analyzes the reservation wages of first and second generation migrants. Based on recently collected and rich survey data of a representative inflow sample into unemployment in Germany, we empirically test the hypothesis that reservation wages increase from first to second generation...