Skills, Wages, and Employment in East and West Germany

24 Pages Posted: 15 Feb 2006

See all articles by Felix R. Fitzroy

Felix R. Fitzroy

University of St. Andrews; IZA Institute of Labor Economics

Date Written: January 1995

Abstract

Disaggregated data from 30 two-digit manufacturing industries in the east and west parts of unified Germany are used to estimate employment for three skill categories of blue collar workers. Employment elasticities are uniformly higher in the east, and for unskilled labor. The former result contradicts union claims that wages had little relevance for east German job losses, while the latter confirms the capital-skill complementarity hypothesis.

JEL Classification: E24, J23

Suggested Citation

Fitzroy, Felix R., Skills, Wages, and Employment in East and West Germany (January 1995). IMF Working Paper No. 95/4, Available at SSRN: https://ssrn.com/abstract=883154

Felix R. Fitzroy (Contact Author)

University of St. Andrews ( email )

St Salvator's College
St Andrews, Fife, KY16 9AJ
United Kingdom
+44 1334 462437 (Phone)
+44 1334 462444 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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