[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/zbw/ifwkwp/1310.html
   My bibliography  Save this paper

Explaining the East German productivity gap: the role of human capital

Author

Listed:
  • Ragnitz, Joachim
Abstract
The paper concentrates on the question whether the low level of productivity in East Germany can be explained by deficits in the stock of human capital. It is shown that figures on ?formal? qualifications yield a too optimistic view on human capital endowments; in fact, the effective stock on human capital in East Germany is lower than in West Germany when differences in job activities are taken into account. One reason is the dominance of non human capitalintensive industries as a consequence of locational decisions in the past. Another reason is a low human capital intensity within the different branches which is a consequence of specialization within affiliated firms. In the next years human capital endowment of the East German economy will further deteriorate as a result of selective migration and unfavorable educational attendance of the younger cohorts. This impedes a fast convergence in productivity between East and West Germany.

Suggested Citation

  • Ragnitz, Joachim, 2007. "Explaining the East German productivity gap: the role of human capital," Kiel Working Papers 1310, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:1310
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/17837/1/kap1310.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Harald Uhlig, 2006. "Regional Labor Markets, Network Externalities and Migration: The Case of German Reunification," American Economic Review, American Economic Association, vol. 96(2), pages 383-387, May.
    2. Klodt, Henning, 1999. "Industrial policy and the East German productivity puzzle," Kiel Working Papers 943, Kiel Institute for the World Economy (IfW Kiel).
    3. Robert J. Barro & Xavier Sala-i-Martin, 1991. "Convergence across States and Regions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(1), pages 107-182.
    4. Jutta Günther, 2004. "Innovation cooperation: experiences from East and West Germany," Science and Public Policy, Oxford University Press, vol. 31(2), pages 151-158, April.
    5. Barro, Robert J & Sala-i-Martin, Xavier, 1992. "Convergence," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 223-251, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Driffield Nigel & Temouri Yama, 2014. "Inward Investment and the Drivers of Post Recession Recovery in Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 234(6), pages 775-799, December.
    2. Alexander Eck & Carolin Fritzsche & Jan Kluge & Joachim Ragnitz & Felix Rösel, 2015. "Fiscal Capacity and Determining Structural Characteristics of the Eastern German Laender," ifo Dresden Studien, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 76, May.
    3. Schnabel Claus, 2016. "United, Yet Apart? A Note on Persistent Labour Market Differences between Western and Eastern Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 236(2), pages 157-179, March.
    4. Reinhold Kosfeld & Timo Mitze, 2020. "The role of R&D-intensive clusters for regional competitiveness," MAGKS Papers on Economics 202001, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    5. Alexandra Schröter, 2008. "Perspektiven der Innovationspolitik in den neuen Bundesländern," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 15(02), pages 40-52, 04.
    6. Joachim Ragnitz, 2010. "Strukturelle Ursachen des Einkommensrückstands Ostdeutschlands," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 17(02), pages .17-23, April.
    7. Björn Alecke & Timo Mitze & Gerhard Untiedt, 2010. "Internal migration, regional labour market dynamics and implications for German East-West disparities: results from a Panel VAR," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 30(2), pages 159-189, September.
    8. repec:zbw:ifwkwp:1309 is not listed on IDEAS
    9. repec:zbw:rwirep:0096 is not listed on IDEAS
    10. Merkl, Christian & Snower, Dennis J., 2008. "Escaping the unemployment trap: The case of East Germany," Journal of Comparative Economics, Elsevier, vol. 36(4), pages 542-556, December.
    11. Stefan Arent & Alexander Eck & Oskar Krohmer & Robert Lehmann & Wolfgang Nagl & Joachim Ragnitz & Marcel Thum, 2011. "Wirtschaftliche Entwicklung Sachsens im Ländervergleich: Bestandsaufnahme und Perspektiven: Gutachten im Auftrag der Sächsischen Staatskanzlei," ifo Dresden Studien, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 59, May.
    12. Timo MITZE & Björn ALECKE & Gerhard UNTIEDT, 2008. "Determinants of Interregional Migration Among German States and its Implications for Reducing East-West Disparities: Results from a Panel VAR Using Efficient GMM Estimation," EcoMod2008 23800089, EcoMod.
    13. Leon Podkaminer, 2013. "Development Patterns of Central and East European Countries (in the course of transition and following EU accession)," wiiw Research Reports 388, The Vienna Institute for International Economic Studies, wiiw.
    14. Martin Popp, 2023. "How elastic is labor demand? A meta-analysis for the German labor market," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 57(1), pages 1-21, December.
    15. Joachim Ragnitz, 2010. "Strukturelle Ursachen des Einkommensrückstands Ostdeutschlands," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 17(02), pages 17-23, 04.
    16. Kuehn, Zoe, 2012. "Migration, Wages, and Parental Background: Obstacles to Entrepreneurship and Growth in East Germany," MPRA Paper 49250, University Library of Munich, Germany.
    17. Krkoska, Libor & Robeck, Katrin, 2008. "Business environment and enterprise behaviour in East Germany compared to West Germany and Central Europe," Journal of Comparative Economics, Elsevier, vol. 36(4), pages 568-583, December.
    18. Juan Carlos Martinez Oliva, 2009. "Riunificazione intertedesca e politiche per la convergenza," Mo.Fi.R. Working Papers 14, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    19. Stephan Brunow & Georg Hirte, 2009. "The age pattern of human capital and regional productivity: A spatial econometric study on german regions," Papers in Regional Science, Wiley Blackwell, vol. 88(4), pages 799-823, November.
    20. Michael Gühne & Gunther Markwardt, 2014. "Lohnunterschiede zwischen Ost- und Westdeutschland: Neue Einsichten," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 21(03), pages 37-44, June.
    21. Kuehn, Zoe, 2014. "The rise or the fall of the wall? Determinants of low entrepreneurship in East Germany," Working Papers in Economic Theory 2014/03, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).
    22. Joachim Ragnitz & Stefan Arent & Johannes Steinbrecher & Björn Ziegenbalg, 2010. "Wachstumsperspektiven und wirtschaftspolitische Handlungsoptionen für Sachsen-Anhalt," ifo Dresden Studien, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 54, May.
    23. Björn Alecke & Timo Mitze & Gerhard Untiedt, 2009. "Internal Migration, Regional Labour Market Dynamics and Implications for German East-West Disparities – Results from a Panel VAR," Ruhr Economic Papers 0096, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alexander Eck & Carolin Fritzsche & Jan Kluge & Joachim Ragnitz & Felix Rösel, 2015. "Fiscal Capacity and Determining Structural Characteristics of the Eastern German Laender," ifo Dresden Studien, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 76, May.
    2. Sebastian Vollmer & Hajo Holzmann & Florian Ketterer & Stephan Klasen, 2013. "Distribution dynamics of regional GDP per employee in unified Germany," Empirical Economics, Springer, vol. 44(2), pages 491-509, April.
    3. repec:zbw:rwidps:0030 is not listed on IDEAS
    4. Atolia, Manoj & Chatterjee, Santanu & Turnovsky, Stephen J., 2010. "How misleading is linearization? Evaluating the dynamics of the neoclassical growth model," Journal of Economic Dynamics and Control, Elsevier, vol. 34(9), pages 1550-1571, September.
    5. Quah, Danny, 1994. "One business cycle and one trend from (many,) many disaggregates," European Economic Review, Elsevier, vol. 38(3-4), pages 605-614, April.
    6. Erich Gundlach, 2003. "Growth Effects of EU Membership: The Case of East Germany," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 30(3), pages 237-270, September.
    7. Michael Beenstock & Daniel Felsenstein, 2003. "Decomposing the Dynamics of Regional Earnings Disparities in Israel," ERSA conference papers ersa03p90, European Regional Science Association.
    8. Olajide, Victor, 2015. "An examination of inter-regional spillover effects of macroeconomic policies in Nigeria," MPRA Paper 69242, University Library of Munich, Germany.
    9. Kim, Hyungtai & Ahn, Sanghoon & Ulfarsson, Gudmundur F., 2021. "Impacts of transportation and industrial complexes on establishment-level productivity growth in Korea," Transport Policy, Elsevier, vol. 100(C), pages 89-97.
    10. Hasan Engin DURAN, 2015. "Non-Linear Regional Income Divergence And Policies: Turkey Case," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 107-114, December.
    11. Rey, Sergio, 2015. "Bells in Space: The Spatial Dynamics of US Interpersonal and Interregional Income Inequality," MPRA Paper 69482, University Library of Munich, Germany.
    12. Tausch, Arno, 2018. "The return of religious Antisemitism? The evidence from World Values Survey data," MPRA Paper 90093, University Library of Munich, Germany.
    13. Wan, Guang Hua, 2005. "Convergence in food consumption in Rural China: Evidence from household survey data," China Economic Review, Elsevier, vol. 16(1), pages 90-102.
    14. Maria Cipollina & Giorgia Giovannetti & Filomena Pietrovito & Alberto F. Pozzolo, 2012. "FDI and Growth: What Cross-country Industry Data Say," The World Economy, Wiley Blackwell, vol. 35(11), pages 1599-1629, November.
    15. Fernando Mayoral & Carlos Garcimartín, 2013. "The impact of population on the reduction of steady-state disparities across Spanish regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 50(1), pages 49-69, February.
    16. Michelacci, Claudio & Zaffaroni, Paolo, 2000. "(Fractional) beta convergence," Journal of Monetary Economics, Elsevier, vol. 45(1), pages 129-153, February.
    17. Rodolfo Cermeño, 2007. "Median-Unbiased Estimation in Panel Data: Methodology and Applications to the GDP Convergence and Purchasing Power Parity Hypotheses," Working Papers DTE 407, CIDE, División de Economía.
    18. Bar-El, Raphael & Parr, John B., 2002. "From metropolis to metropolis-based region: the case of Tel-Aviv," ERSA conference papers ersa02p392, European Regional Science Association.
    19. Massimiliano Affinito, 2011. "Convergence clubs, the euro-area rank and the relationship between banking and real convergence," Temi di discussione (Economic working papers) 809, Bank of Italy, Economic Research and International Relations Area.
    20. Mustafa Gömleksiz & Ahmet Şahbaz & Birol Mercan, 2017. "Regional Economic Convergence in Turkey: Does the Government Really Matter for?," Economies, MDPI, vol. 5(3), pages 1-16, July.
    21. Martina Vukašina & Ines Kersan-Škabiæ & Edvard Orliæ, 2022. "Impact of European structural and investment funds absorption on the regional development in the EU–12 (new member states)," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 17(4), pages 857-880, December.

    More about this item

    Keywords

    Productivity; East Germany; Human Capital;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:ifwkwp:1310. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/iwkiede.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.