Productivity differences between Western and Eastern German Establishments

Abstract

"The low productivity of eastern German enterprises is frequently seen as an essential reason for their failing to expand and consequently contributing little to easing the strain on eastern Germany's labour market. Using the data from the IAB establishment panel of 1997 it is possible to show that in eastern Germany's manufacturing industry productivity is on average 43% behind that of western Germany. Nonetheless considerable differences can be ascertained between the establishments in the two parts of the country. In accordanco with other studies it emerged that issues of company organisation and market position play a greater role in explaining the differences in productivity than issues of technical equipment in the establishment. There is a clear deficit of establishments which export and at the same time have a l high level of productivity." (Author's abstract, IAB-Doku) ((en))

Cite article

Bellmann, L. & Brussig, M. (1999): Productivity differences between Western and Eastern German Establishments. In: IAB Labour Market Research Topics No. 37, p. 1-12.