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In 1997 GDP per capita in East Germany was 57% of that of West Germany, wage rates were 75% of western levels, and the unemployment rate was at least double the western rate of 7.8%. One would expect that if capital flows and trade in goods failed to bring convergence, labor flows would respond,...
Persistent link: https://www.econbiz.de/10012471211
I examine the determinants of inter-state migration of adults within western Germany, using the German Socio-Economic Panel from 1984-2000. I highlight the prevalence and distinctive characteristics of migrants who do not change employers. Same-employer migrants represent one fifth of all...
Persistent link: https://www.econbiz.de/10012468060
Starting in 1985, (West) German unions began to reduce standard hours on an industry by industry basis, in an attempt to lower unemployment. Whether work-sharing works - whether employment rises when hours per worker are reduced - is theoretically ambiguous. I test this using both individual...
Persistent link: https://www.econbiz.de/10012473114
A transformation of what had become a universal 40 hour standard work week in Germany began in 1985 with reductions negotiated in the metal-working and printing sectors. These reductions have continued through 1995, and were followed by reductions in other sectors. The union campaign aimed to...
Persistent link: https://www.econbiz.de/10012473122
West Germany's Employment Promotion Act of 1985 facilitated the use of fixed term contracts and increased the number of dismissals above which the employer is required to establish a 'social plan' (involving severance payments). The effect of this reduction in 'firing costs' on movements in...
Persistent link: https://www.econbiz.de/10012474090
Germany experienced an even deeper fall in GDP in the Great Recession than the United States, with little employment loss. Employers' reticence to hire in the preceding expansion, associated in part with a lack of confidence it would last, contributed to an employment shortfall equivalent to 40...
Persistent link: https://www.econbiz.de/10012461471