Earnings Disparities in Unified Germany: Nominal versus Real

Review of Regional Research - Tập 26 - Trang 171-189 - 2006
Michael W. M. Roos1
1Wirtschafts- und Sozialwissenschaftliche Fakultät, Lehrstuhl VWL (Makroökonomie), Universität Dortmund, Dortmund, Germany

Tóm tắt

Data on nominal earnings are widely used both in policy discussions and in economic research. However, for welfare comparisons and tests of economic theories, real – i.e. price level adjusted – earnings should be used. In this paper, I provide evidence on the cost of living in German states and use these data to calculate real earnings. Then, I compare nominal and real earnings and their evolutions from 1993 until 2002. I show that the regional variation of real earnings is much lower than that of nominal earnings and that nominal earnings are a bad substitute for real earnings in economic applications.

Tài liệu tham khảo

Burda MC, Hunt J (2001) From reunification to economic integration: productivity and the labor market in eastern Germany. Brookings Papers on Economic Activity 2/2001:1–92 Burkhauser RV, Frick JR, Schwarze J (1997) A comparison of alternative measures of economic well-being for Germany and the United States. Review of Income and Wealth 43:153–171 Christoph B (2002) Zufriedenheit in Lebensbereichen, In: Statistisches Bundesamt, ed. Datenreport 2002, Bundeszentrale für politische Bildung, pp 442–452 Decressin J (1994) Internal migration in West Germany and implications for east-west salary convergence. Weltwirtschaftliches Archiv 130:231–257 Deutscher Bundestag (2000) Die innere Einheit Deutschlands ist noch nicht vollendet. Blickpunkt Bundestag 09/2000, http://www.bundestag.de/bp/2000/bp0009/0009018.html (accessed 16 December 2004) DIW, Deutsches Institut für Wirtschaftsforschung Berlin (1991) Einkommen und Verbrauch der privaten Haushalte in den neuen und alten Bundesländern. Wochenbericht 29/91:403–415 DIW, Deutsches Institut für Wirtschaftsforschung Berlin (2002) Fortschrittsbericht wirtschaftswissenschaftlicher Institute über die wirtschaftliche Entwicklung in Ostdeutschland. Forschungsauftrag des Bundesministeriums für Finanzen DuMond JM, Hirsch BT, Macpherson DA (1999) Wage differentials across labor markets and workers: Does cost of living matter? Economic Inquiry 37:577–598 Franz W, Steiner V (2000) Wages in the East German transition process: facts and explanations. German Economic Review 1:241–269 Frijters P, Haisken-DeNew JP, Shields MA (2004) Money does matter! Evidence from increasing real incomes and life satisfaction in East Germany following reunification. American Economic Review 94:730–741 Greenwood MJ (1985) Human migration: theory, models, and empirical studies. Journal of Regional Science 25:521–544 Grunert R (1997) Was ist die D-Mark im Osten Deutschlands wert? Wirtschaft im Wandel 1/1997:9–17 Hill RJ (2002) Measuring price differences across countries and time in the European Union. Mimeo. University of South Wales Hunt J (2000) Why do people still live in East Germany? NBER Working Paper 7564 IWH, Institut für Wirtschaftsforschung Halle (2003) Ostdeutsche Wirtschaft: Produktion 2003 wieder im Plus. Wirtschaft im Wandel 8/2003:227–246 Johnston R, McKinney M, Stark T (1996) Regional price level variations and real household incomes in the United Kingdom, 1979/80–1999. Regional Studies 30:567–578 Koo J, Phillips KR, Sigalla FD (2000) Measuring regional cost of living. Journal of Business and Economic Statistics 18:127–136 Krause P (1995) Ostdeutschland fünf Jahre nach der Einheit. DIW Wochenbericht 50/95 McMahon WW (1991) Geographical cost of living differences: an update. Journal of the American Real Estate and Urban Economics Association 19:426–450 Roback J (1982) Wages, rents, and the quality of life. Journal of Political Economy 90:1257–1278 Roos MWM (2003) Regional price levels in Germany. ERSA Conference Paper ersa03p511 Slesnick DT (2002) Prices and regional variation in welfare. Journal of Urban Economics 51:446–468 Statistisches Bundesamt (1993) 1%-Gebäude und Wohnungsstichprobe. Fachserie 5 Statistisches Bundesamt (2004) Staatliche Leistungen machen ein Viertel des Bruttoeinkommens aus. Pressemeldung vom 15. September 2004 Ströhl G (1994) Zwischenörtlicher Vergleich des Verbraucherpreisniveaus in 50 Städten. Wirtschaft und Statistik 6/1994:415–434 Tabuchi T (2001) On interregional price differentials. Japanese Economic Review 52:104–115 Van Praag BMS, Frijters B, Ferrer-i-Carbonell A (2003) The anatomy of subjective well-being. Journal of Economic Behavior and Organization 51:29–49