Explaining the low labor productivity in East Germany : a spatial analysis

@inproceedings{FuchsSchndeln2007ExplainingTL,
  title={Explaining the low labor productivity in East Germany : a spatial analysis},
  author={Nicola Fuchs-Sch{\"u}ndeln and Rima Izem},
  year={2007}
}
This paper presents a spatial analysis of unemployment rates in Germany. The goal of this analysis is to explain the stubbornly low labor productivity and high unemployment rates in Eastern Germany. We build a model of commuting to distinguish between worker and job characteristics as the main causes of the low labor productivity, and use the method of simulated moments to estimate the East-West ratios of worker and job characteristics. The “slope” of the unemployment rate across the former… CONTINUE READING

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