We provide first evidence on the relationship between cognitive abilities and earnings in Germany using data from the German Socio-Economic Panel (SOEP) Study. The estimates suggest that mechanics abilities are positively related to wages of West German workers, even when educational attainment...

Although the standard work week is longer in East than in West Germany, there is a higher incidence and average amount of unpaid overtime in the East. We try to explain the striking differences in unpaid overtime by analyzing the labor supply side. We focus on the investment character of...