throughout the years 1992{2001. Wage dispersion has generally been rising. The increase was more pronounced in East Germany and … Germany, but changes in the characteristics captured better parts of the observed wage changes over time. …

throughout the years 1992-2001. Wage dispersion has generally been rising. The increase was more pronounced in East Germany and … Germany, but changes in the characteristics captured better parts of the observed wage changes over time. …

This paper assesses whether the economy of East Germany is catching up with the West German region in terms of welfare … studies of convergence between regions of reunified Germany, our approach is purely based upon the time series dimension and … is thus directly focused on the catching up process in East Germany as a region. Our testing setup includes standard ADF …