Participation Behavior of East German Women after German Unification

Bonin, Holger; Euwals, Rob

doi:10.2139/ssrn.297087

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Participation Behavior of East German Women after German Unification

36 Pages Posted: 21 Jan 2002

See all articles by Holger Bonin

Holger Bonin

IZA Institute of Labor Economics; ZEW – Leibniz Centre for European Economic Research

Rob Euwals

CPB Netherlands Bureau of Economic Policy Research; IZA Institute of Labor Economics; Centre for Economic Policy Research (CEPR)

There are 2 versions of this paper

Date Written: July 2002

Abstract

The paper studies the determinants of labor force participation by East German women after unification. To isolate the role of preferences on labor force participation from individual characteristics, we develop a panel data model that simultaneously explains participation, employment, and wages. The model, estimated for East and West Germany on the basis of the German Socio-Economic Panel, indicates that distinct preferences could explain the regional difference in participation rates at unification. Afterward East German women became less willing to participate, but the negative participation trend was offset on the aggregate level by changes in characteristics and wages promoting participation.

Keywords: Transitional Economies, Labor Force Participation, Panel Data

JEL Classification: C33, J21, J31

Suggested Citation: Suggested Citation

Bonin, Holger and Euwals, Rob, Participation Behavior of East German Women after German Unification (July 2002). Available at SSRN: https://ssrn.com/abstract=297087 or http://dx.doi.org/10.2139/ssrn.297087