Equality of Opportunity: East vs. West Germany

7 Pages Posted: 10 Oct 2017

See all articles by Andreas Peichl

Andreas Peichl

ZEW – Leibniz Centre for European Economic Research; University of Mannheim - School of Economics (VWL); IZA Institute of Labor Economics; University of Essex - Institute for Social and Economic Research (ISER)

Martin Ungerer

ZEW – Leibniz Centre for European Economic Research

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Date Written: October 2017

Abstract

The case of German reunification has been subject to extensive research on earnings inequality and labour market integration. However, little is known about the development of equality of opportunity (EOp) in East and West Germany after 1990. Using German micro data, we empirically analyse how circumstances beyond the sphere of individual control relate to inequality in East and West Germany. Our results show that EOp is larger in East than in West Germany. However, despite increasing income inequality, EOp remained surprisingly constant.

Keywords: equality of opportunity, earnings inequality, Germany, family background

JEL Classification: D63, H2, J62, J7

Suggested Citation

Peichl, Andreas and Ungerer, Martin, Equality of Opportunity: East vs. West Germany (October 2017). Bulletin of Economic Research, Vol. 69, Issue 4, pp. 421-427, 2017, Available at SSRN: https://ssrn.com/abstract=3050199 or http://dx.doi.org/10.1111/boer.12103

Andreas Peichl (Contact Author)

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

University of Mannheim - School of Economics (VWL) ( email )

Mannheim 68131
Germany

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

University of Essex - Institute for Social and Economic Research (ISER)

Wivenhoe Park
Colchester CO4 3SQ
United Kingdom

Martin Ungerer

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

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