The paper concentrates on the question whether the low level of productivity in East Germany can be explained by … capital endowments; in fact, the effective stock on human capital in East Germany is lower than in West Germany when … younger cohorts. This impedes a fast convergence in productivity between East and West Germany. …

firms in West Germany. The analysis is conducted at the firm level by use of a unique database constructed by field work … gap ; Central East Europe ; East Germany ; firm-level analysis …