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The caring hand that cripples: The East Germany labour market after reunification

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dc.creator Snower, Dennis J.
dc.creator Merkl, Christian
dc.date 2006
dc.date.accessioned 2013-10-16T06:18:16Z
dc.date.available 2013-10-16T06:18:16Z
dc.date.issued 2013-10-16
dc.identifier Discussion paper Centre for Economic POlicy Research, London 5656
dc.identifier http://hdl.handle.net/10419/3828
dc.identifier ppn:51311839X
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/3828
dc.description The East German labour 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 labour cost (normalized by productivity) since the beginning of the 1990s did not help to kick start the East. We suggest that labour force participants fell into 'traps,' concerning low skills, ageing of the workforce, labour-saving capital and skills, capital underutilization, and unemployment arising from the decline of the tradeable sector.
dc.language eng
dc.publisher Centre for Economic Policy Research London
dc.relation CEPR Discussion paper series / Centre for Economic Policy Research 5656
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject E24
dc.subject J3
dc.subject P2
dc.subject ddc:330
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 Germany labour market after reunification
dc.type doc-type:workingPaper

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