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The caring hand that cripples: The East German labor market after reunification (detailed version)

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dc.creator Snower, Dennis J.
dc.creator Merkl, Christian
dc.date 2006
dc.date.accessioned 2013-10-16T06:54:59Z
dc.date.available 2013-10-16T06:54:59Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/3787
dc.identifier ppn:508121868
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/3787
dc.description The East German labor market has hardly made any progress since German reunification, despite massive migration flows and support from the West. We argue that East Germany is in trouble precisely because of the support it has received. This paper explores the phenomenon of "the caring hand that cripples," arising from bargaining by proxy, the adoption of the West German welfare system and the associated employment persistence. Even the steady decrease of labor cost (normalized by productivity) since the beginning of the nineties did not help to kick start the East. We suggest that labor force participants fell into "traps," concerning low skills, ageing of the workforce, labor-saving capital and skills, capital underutilization, and unemployment arising from the decline of the tradeable sector.
dc.language eng
dc.publisher Kiel Institute for the World Economy (IfW) Kiel
dc.relation Kieler Arbeitspapiere 1263
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject J3
dc.subject E24
dc.subject ddc:330
dc.subject German unification
dc.subject Labor markets
dc.subject Labor market traps
dc.subject Arbeitslosigkeit
dc.subject Arbeitsmarktflexibilisierung
dc.subject Sozialstaat
dc.subject Wirtschaftliche Anpassung
dc.subject Subvention
dc.subject Neue Bundesländer
dc.title The caring hand that cripples: The East German labor market after reunification (detailed version)
dc.type doc-type:workingPaper


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