Using a large administrative dataset for Germany, this paper compares employment developments in exiting and surviving … establishments. For both West and East Germany we find a clear shadow of death effect reflecting lingering illness: establishments … are more clearly visible in West than in East Germany. Our results also hold when applying a matching approach. …

Using a large administrative dataset for Germany, this paper compares employment developments in exiting and surviving … establishments. For both West and East Germany we find a clear 'shadow of death' effect reflecting lingering illness: establishments … are more clearly visible in West than in East Germany. Our results also hold when applying a matching approach. …