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After the Fall of the WallLife Courses in the Transformation of East Germany$
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Martin Diewald, Anne Goedicke, and Karl Ulrich Mayer

Print publication date: 2006

Print ISBN-13: 9780804752084

Published to Stanford Scholarship Online: June 2013

DOI: 10.11126/stanford/9780804752084.001.0001

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The Quest for a Double Transformation

The Quest for a Double Transformation

Trends of Flexibilization in the Labor Markets of East and West Germany

(p.269) Chapter Twelve The Quest for a Double Transformation
After the Fall of the Wall
Martin Diewald
Stanford University Press

This chapter discusses the crucial area of labor-market regulation and labor-market dynamics to address the question of whether the two parts of Germany were developing into the same direction and with the same pace of change during the 1990s. It focuses on job-shift patterns, unemployment, and the implementation of internal as well as external flexibility measures. The results support the view of a simple export of outdated West German regulations to the East, leading in both East and West Germany to low dynamics and a sharp division between insiders and outsiders in the labor market. The pace of flexibilization is about the same in most respects in both parts of Germany, but due to the more severe initial situation in East Germany, the signs of a labor-market catastrophe are more visible there, as exemplified in the double amount of unemployment.

Keywords:   labor-market regulation, labor-market dynamics, German markets, unemployment

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