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The Skill Loss of Older East Germans after Unification
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 125 (2005), Iss. 1 : pp. 7–16
6 Citations (CrossRef)
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Gathmann, Christina
Cited By
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The Long-Run Effects of Communism and Transition to a Market System on Self-Employment: The Case of Germany
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Can socioeconomic heritage produce a lost generation with regard to entrepreneurship?
Wyrwich, Michael
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Abstract
This paper documents and analyzes changes in relative wages of older East Germans after unification. In 1990, employees above 45 started out with very low wages relative to younger East Germans or West Germans in the same cohort. Results suggest that older employees lost up to 30 percent of their earnings because socialist work experience fully depreciated after the regime change. Older employees lost further in relative terms because their retums to education and occupational skills were much lower than younger East Germans early in the transition.