Economic transition and unemployment in East Germany by Ylva Axell

Cover of: Economic transition and unemployment in East Germany | Ylva Axell

Published by Stockholm Institute of Soviet and Eastern European Economics in Stockholm .

Written in English

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Subjects:

  • Economic stabilization -- Germany (East),
  • Unemployment -- Germany (East),
  • Germany (East) -- Economic conditions -- 1990-

Edition Notes

Book details

StatementYlva Axell & Kristian Uppenberg.
SeriesWorking paper (Handelshögskolan i Stockholm. Östekonomiska institutet) -- no. 19
ContributionsUppenberg, Kristian., Handelshögskolan i Stockholm. Östekonomiska institutet.
The Physical Object
Pagination64 p. ;
Number of Pages64
ID Numbers
Open LibraryOL18962635M

Download Economic transition and unemployment in East Germany

Constraints and opportunities facing the new German economy Employment and welfare restructuring: prospective avenues --Conclusion: responding to labour market transitions --App. Economic transition and unemployment in East Germany book on ALMP according to types of measures (in million DM), East Germany, --App.

Key data for East Germany's economic 'catching-up' ( union with East Germany. I Shortly thereafter, the West and East German governments agreed to economic, monetary, and social union. By Julythe State Treaty, which formalized the. East German economy seems to be low. This paper analyzes the process of (relative) wage adjustment in East Germany and the resulting development of competitiveness and unemployment differentials.

We present estimates of the wage adjustment in East vs. West Germany based on wage convergence and effects of unemployment on wage growth. What factors determine the success of economic transition, development and growth. Examining the contrast between East German shock-therapy and Hungary's gradualism, the book generates a set of generalisable conditions for economic development which Brand: Palgrave Macmillan UK.

What factors determine the success of economic transition, development and growth. Examining the contrast between East German shock-therapy and Hungary's gradualism, the book generates a set of generalisable conditions for economic development which.

Inthe average unemployment rate was % in the six states of the former East Germany, compared with % in the 10 states of the former West Germany. (In all economic statistics in this analysis, Berlin is counted in East Germany, even though the city was divided during communism and is not directly comparable to other parts of East.

Additional East marks are likely to be exchanged at a lower rate than 1 to 1 sometime in the future for permitted amounts of currency and for use in investment, to help the East German economy. On July 1,the economies of the two German states became was the first time in history that a capitalist and a socialist economy had suddenly become one, and there were no precise guidelines on how it could be done.

Instead, there were a number of problems, of which the most severe were the comparatively poor productivity of the former East German economy and its links to the. East Germany had a command economy, similar to the economic system in the Soviet Union and other Comecon member states — in contrast to the market economies or mixed economies of capitalist state established production targets, set prices, and also allocated resources, codifying these decisions in comprehensive means of production were almost entirely state-owned.

Germany - Germany - The economy, – The speed of Germany’s advance to industrial maturity after was breathtaking. The years from to witnessed a doubling of the number of workers engaged in machine building, from slightly more than one-half million to well over a million.

An immediate consequence of expanding industrial employment was a sharp drop in emigration; from. After the Berlin Wall came down, 18 million people in East Germany were — for the first time in more than 40 years — able to travel as widely as they could afford; express political opinions.

The paper is structured as follows. Section 2 discusses the economic background of the East German economy in transition, while section 3 describes the benefit system and its changes during the s. Previous studies on the effects of unemployment compensation on unemployment duration in West Germany are summarised in section 4.

In “East Germany in from the cold: The economic aftermath of currency union” (PDF), Andrew K. Rose, George A.

Akerlof, Helga Hessenius, and Janet Yellen document the basic facts of the. About million had left East Germany bypartly looking for better jobs, partly because of unemployment. Household income in had already reached 54% of West German income (DIW et al.

DIW (Deutsches Institut für Wirtschaft), IfW (Institut für Weltwirtschaft) and IWH (Institut für Wirtschaftsforschung Halle). Economic Transition in Hungary and East Germany: Gradualism, Shock Therapy and Catch-Up Development (Studies in Economic Transition) [J. Stephan] on *FREE* shipping on qualifying offers.

What factors determine the success of economic transition, development and growth. Examining the contrast between East German shock-therapy and Hungary's gradualism. Downloadable. We demonstrate that almost one half of the observed wage gap between East and West Germany reflects differences in worker, establishment, and regional characteristics rather than differences in productivity at the establishment level.

Regional price and establishment size differentials alone account for one quarter of the overall East-West wage gap. He was the author of several dozen books, and for years taught economics at Harvard University.

With regard to Germany’s record, Galbraith wrote: “ The elimination of unemployment in Germany during the Great Depression without inflation — and with initial reliance on essential civilian activities — was a signal accomplishment.

As a result, unemployment in eastern Germany has remained stubbornly high at about 15% and transfer payments to east Germans have totaled $ trillion with no end in sight. “East Germany had the wrong prices: Labor was too expensive, and capital was too cheap,” commented Klaus Deutsch, an economist at Deutsche Bank.

And economic craziness exists in other nations as well. Socialism Ruined East Germany. In a column for the New York Times, Jochen Bittner writes about how a rising star of Germany’s Social Democrat Party wants the type of socialism that made former East Germany an economic failure.

In view of this background, one could analyze the unemployment issue of the transition (new EU member) economies relative to that of mature market economies (e.g., West Germany) by examining the relationship between aggregate economic activity on one hand and unemployment and its dynamics on the other hand by focusing on either inflows (job.

Downloadable (with restrictions). Following monetary union with the west in Junethe employment rate for east German year olds fell from 89% to 73% in six years, and the decline for women was considerably larger.

This employment fall is possibly the worst of any European transition economy, yet one might have expected the east German transition to have been the most successful. The economy in the East, in other words, has benefited from the same export-driven expansion that has boosted the broader German economy since the financial crisis, but without catching up.

East Germany, with Bonn's support, should eventually be able to make the difficult transition to a market-driven system. But the time and the cost are sure to. Since the reunification of East and West Germany inthe old West Germany has transferred a massive $2 trillion (€ trillion) in economic aid in an attempt to help former East Germany.

Because of these circumstances, private investment and economic growth came to eastern Germany at a relatively slow rate. Little new equity capital flowed in.

Investment during the early years of unification was only 1 percent of the all-German GDP, when much more was needed to jump-start the economy of eastern Germany. Get this from a library. Determinants of non-employment and unemployment durations in East Germany. [Jennifer Hunt; National Bureau of Economic Research.] -- Following monetary union with the west in Junethe employment rate for east German year olds fell from 89% to 73% in six years, and the decline for women was considerably larger.

This employment fall is possibly the worst of any European transition economy, yet one might have expected the east German transition to have been the most successful. I seek insight into the problem by examining the determinants of transitions between non-employment (or unemployment) and employment, using the survey years of the.

Init rose to more than eighteen per cent; inthe latest year considered in the KfW study, unemployment in eastern Germany was per cent, compared to six per cent in the west. The economic outlook for Germany is bright.

Optimism among investors abounds, and unemployment is at a record low. Policymakers now have a unique opportunity to address the challenges facing the German economy. These are varied but include boosting wages, investing in infrastructure, and reducing the large trade surplus.

In this book, one of Germany’s most influential economists describes his country’s economy, the largest in the European Union and the third largest in the world, and analyzes its weaknesses: poor GDP growth performance, high unemployment due to a malfunctioning labor market, and an unsustainable social security system.

Horst Siebert spells out the reforms necessary to overcome these. Economic unification and beyond. The implementation of Mikhail Gorbachev’s glasnost (political liberalization) and perestroika (economic restructuring) policies in the Soviet Union fueled sentiment in Germany that reunification could become a reality, and the basic steps toward German economic unity were accomplished with astonishing speed.

The unexpected opening of the frontier between East. Unemployment in the transition economies1 1. Introduction This report investigates causes for the disappointingly poor employment performance and persistently high unemployment in the transition countries of Central and Eastern Europe and Central Asia (CEECA).

It begins with an overview of labour market developments in these countries. Furthermore, we could link the birth data to unemployment data at the level of the federal states.

The added variation of unemployment rates through the monthly and more fine-grained regional specification allowed to control for spatial and temporal variation in the magnitude of the economic transition crises in East Germany following.

1. Introduction. The persistence of high unemployment rates in the large continental European economies—France, Germany, Italy and Spain—remains a challenge to economists, despite a prodigious literature on the subject (e.g., Decressin and Fatás,Elhorst,Faini et al.,Gray,Sinn and Westermann,Taylor and Bradley, ).

Germany Treuhand took the heat for privatization of East German economy. When it came to turning the GDR's planned economy into a market economy, there was no blueprint to follow but just the wish.

The paper tests three hypotheses about the causes of unemployment in the Central-East European transition economies and in a benchmark market economy (Western part of Germany). The first hypothesis (H1) is that unemployment is caused by inefficient matching.

Hypothesis 2 (H2) is that unemployment is caused by low demand. trialization of eastern Germany's regional economy. Exceptionalism in privatization Critics of Germany's reunification are in a fine position to cite lackluster growth rates exhibited in the economic performance of the eastern region relative to other countries undergoing transition from planned to market economy.

Economics of Education Review: hr: Oxford Bulletin of Economics and Statistics: hr: European Journal of Operational Research: hr: Review of Development Economics: hr: Journal of Mathematical Economics: hr: Theoretical Economics: hr: Econometrica: hr: Journal of Economic Psychology.

Over the last decade, Germany spent more than € million per year on active labour market policies (ALMPs) to combat the large and persistent unemployment problem in East Germany. This problem has its origin in the rapid transition from a centrally planned to a market oriented economy after German Reunification in fluctuating between% and %.East Germany, in contrast, registers an unemployment rate rising from % to %, inflow as a share of the labor force rate rising from about % to well above 2%, outflowas a share of the labor force rising to about % by the mid s and.

Around 83 percent of East Germans approve of and 13 percent disapprove of East Germany's transition to a market economy, with the rest saying they weren't sure. Life satisfaction in both East and West Germany has substantially increased sincewith 15 percent of East Germans placing their life satisfaction somewhere between 7 to 10 on a 0.unemployment dynamics in the united states and west germany Posted By EL James Ltd TEXT ID c Online PDF Ebook Epub Library structural var model and identify the effects of a technology shock as well as two policy shocks we find that the worker reallocation process varies substantially with the.unemployment dynamics in the united states and west germany Posted By Seiichi Morimura Ltd TEXT ID c Online PDF Ebook Epub Library one of the united states closest and strongest allies in europe us relations with germany are based on our close and vital relationship as friends trading partners and allies.

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