Dramatically declining employment and rising unemployment rates have characterized the labour market in Eastern Germany since economic, monetary and social union. This is the first empirical study which analyses the development of the wage structure after the union. With a large and growing...

Following the unification of the two Germanies in October 1990, the former German Democratic Republic was subject to a series of economic shocks, resulting in large declines in output and employment. This paper investigates the behaviour of the East German labour market during the initial stages...