DP652 Trade Unions, Wages and Structural Adjustment in the New German States

Author(s): Michael C Burda, Michael Funke
Publication Date: June 1992
Keyword(s): Germany, High Wage Policy, Trade Unions
JEL(s): E24, J38, J51, J58
Programme Areas: Human Resources
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=652

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 a `high wage policy' on the economic assumptions necessary to generate them.