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Trade unions, wages and structural adjustment in the new German states

Author: Burda, Michael C. ; Funke, MichaelINSEAD Area: Economics and Political Science Series: Working Paper ; 92/32/EPS Publisher: Fontainebleau : INSEAD, 1992.Language: EnglishDescription: 31 p.Type of document: INSEAD Working Paper Online Access: Click here Abstract: The rapid wage increases observed in Eastern Germany over the past two years have important implications for the direction taken by structural change in this region. These implications are not solely negative, and remain controversial in the public debate. This paper discusses four aspects of the impact of a "high wage" policy on the economic transformation in the East, and evaluates the economic assumptions necessary to generate them.
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The rapid wage increases observed in Eastern Germany over the past two years have important implications for the direction taken by structural change in this region. These implications are not solely negative, and remain controversial in the public debate. This paper discusses four aspects of the impact of a "high wage" policy on the economic transformation in the East, and evaluates the economic assumptions necessary to generate them.

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