The persistent pay gap between Easterners and Westerners in Germany

A quarter of a century after Germany’s reunification, Eastern Germans still earn substantially less than Western Germans. Heather Dickey discusses the German wage differential and isolates the effect of differing returns to human capital endowments, the possibility of a location effect, and human capital depreciation on the regional wage gap.

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Image courtesy of interviewee. May 12, 2023

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