Since 2000, the individual monthly payments from the Germany Statutory Pension Insurance Scheme (GRV) to new male pensioners have been declining. Those entering retirement today receive an average of 7 percent less than those who retired ten years ago. At the same time, the number of recipients...

The idea governing the transition to a market economy in East Germany-in contrast to other Eastern European countries-was that of using socio-political measures to raise East German living conditions to the higher West German standards. And indeed, the rising living standard and subjective...