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- W2254489278 abstract "This paper studies whether the transition from a centrally planned to a market economy offers new perspectives for those who, in economic terms, wererelatively deprived under the old regime. Previous empirical research on this question has been limited by the availability of representative longitudinalmicro-data that track individuals' labour market careers across different political regimes. Our study seeks to fill this research gap by looking at thetransition of Eastern Germany following German Unification. Using a unique large-scale German administrative data set, we measure individuals' relative economic position by exploiting information on whether individuals were in the bottom of the pre-unification wage distribution. We then address thequestion of how workers' low or high-wage status determines their wage and labour market status within and across different regimes. We document strongevidence of a dynamic selection process into low-wage employment after Uni-fication. Furthermore, consistent with a weak connection between individuals' true productivity and their pre-unification low-wage status, the extent of across regime state dependence is found to be small in magnitude and appearsto vanish over time. For males, the small extent of across regime dependence is found to be most pronounced among the medium and high-skilled, suggesting the depreciation of general human capital as a potential explanation." @default.
- W2254489278 created "2016-06-24" @default.
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- W2254489278 date "2016-01-01" @default.
- W2254489278 modified "2023-09-27" @default.
- W2254489278 title "Changing Fortunes During Economic Transition Low-Wage Persistence Before and after German Unification" @default.
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- W2254489278 doi "https://doi.org/10.2139/ssrn.2762308" @default.
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