Resource title

Minimum Wages and Employment: The Case of German Unification

Resource image

image for OpenScout resource :: Minimum Wages and Employment: The Case of German Unification

Resource description

Analysis in terms of the two-sector open economy shows that in bringing the market economy to East Germany, West Germany seems to have disregarded important fundamentals. Premature formation of a currency union led to a substantial real appreciation of the East German currency. Premature implementation of the West German system of wage bargaining resulted in inappropriate minimum wage schedules. Both measures made East German production possibilities and employment decline.

Resource author

Bernhard Heitger

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/17724

Resource license

Adapt according to the presented license agreement and reference the original author.