Since the inequality of earnings in East Germany has approached West German levels in the late 1990s, the standard Roy model predicts that a positive selection bias of East-West migrants should disappear. Using a switching regression model and data from the IAB-employment sample, we find however...

Income effects of unemployment and involuntary short-time work are investigated in the context of the East German transformation process from a planned socialistic economy to a market-oriented economy. Theoretical considerations from human capital theory are derived for the income effects in...