The East-West-German Productivity Gap: Lessons from firm-level data?

Abstract According to national accounts, the East German economy is at only 80 % of West German labour productivity even 30 years after the fall of the Iron Curtain. This difference in aggregate labour productivity goes hand in hand with many of the economic and societal problems East Germany faces...

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Main Author: Steffen Müller
Format: Article
Language:deu
Published: Sciendo 2021-04-01
Series:Wirtschaftsdienst
Online Access:https://doi.org/10.1007/s10273-021-2835-3
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author Steffen Müller
author_facet Steffen Müller
author_sort Steffen Müller
collection DOAJ
description Abstract According to national accounts, the East German economy is at only 80 % of West German labour productivity even 30 years after the fall of the Iron Curtain. This difference in aggregate labour productivity goes hand in hand with many of the economic and societal problems East Germany faces today. To understand the sources of the aggregate productivity gap, this study discusses recent literature on the East-West gap that applies granular firm and product level data. The evidence clearly shows the relevance of firm-level productivity differences for the aggregate gap and challenges common hypotheses derived from aggregate data.
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spelling doaj-art-5f6dfb2e9c4f4a4694ea80c840a3bed12025-02-02T09:54:20ZdeuSciendoWirtschaftsdienst0043-62751613-978X2021-04-01101S1212510.1007/s10273-021-2835-3The East-West-German Productivity Gap: Lessons from firm-level data?Steffen Müller0Abteilung Strukturwandel und Produktivität, Leibniz-Institut für Wirtschaftsforschung Halle (IWH)Abstract According to national accounts, the East German economy is at only 80 % of West German labour productivity even 30 years after the fall of the Iron Curtain. This difference in aggregate labour productivity goes hand in hand with many of the economic and societal problems East Germany faces today. To understand the sources of the aggregate productivity gap, this study discusses recent literature on the East-West gap that applies granular firm and product level data. The evidence clearly shows the relevance of firm-level productivity differences for the aggregate gap and challenges common hypotheses derived from aggregate data.https://doi.org/10.1007/s10273-021-2835-3
spellingShingle Steffen Müller
The East-West-German Productivity Gap: Lessons from firm-level data?
Wirtschaftsdienst
title The East-West-German Productivity Gap: Lessons from firm-level data?
title_full The East-West-German Productivity Gap: Lessons from firm-level data?
title_fullStr The East-West-German Productivity Gap: Lessons from firm-level data?
title_full_unstemmed The East-West-German Productivity Gap: Lessons from firm-level data?
title_short The East-West-German Productivity Gap: Lessons from firm-level data?
title_sort east west german productivity gap lessons from firm level data
url https://doi.org/10.1007/s10273-021-2835-3
work_keys_str_mv AT steffenmuller theeastwestgermanproductivitygaplessonsfromfirmleveldata
AT steffenmuller eastwestgermanproductivitygaplessonsfromfirmleveldata