Main task of the analysis is a comparison of the income development of employees in the private and public sector since reunification. The expertise compares the growth of the gross wage to the union negotiated wage. Thereby amenities as well as vacation days ours of work were considered. Also the real wages were examined, because the price level is an important factor of the wage bargaining process in the private economy. Finally the lay-off risk in the public and private sector was analyzed to ensure a global discussion. This is important for the correct evaluation of wages in different sectors of an economy.
The expertise is focused on a descriptive comparison of the wage-development in the public and private sectors. Therefore two datasets are used: the `Volkswirtschaftliche Gesamtrechnung der Länder (VGR dL)` and the `BA-Employment Panel`. The Analysis is done for the main sectors of the VGR dL. In the second part the union negotiated wages are represented for the introduced sectors since 1994. In the following both developments are compared.
At the end of the expertise the regional price level is observed to compare the real wages in different parts of Germany. This is used to evaluate the earnings in different regions and sectors. Finally the important fact of lay-off risks in different industries was investiogated. Wage differences are often explained by different job securities. With respect to these results we discuss the development of wages in Eastern Germany since 1994.
Volkswirtschaftliche Gesamtrechnung der Länder Employment Panel of the Bundesagentur für Arbeit WSI-Tarifarchiv
The results show a slow reduction of the wage differences in private industries between Eastern and Western Germany. This is true for the nominal as well as for the real wages. The fast convergence of the union negotiated wages in the private sector does not result in a convergence of the average wage levels. We observe a faster convergence of the union negotiated wage in industries with lower tariff commitment. Industries with a high tariff commitment do not adapt the western union negotiated wages perfectly. In contrast to the private sector we observe a good match of the development of nominal and negotiated wages in the public sector in both parts of Germany. In the private sector are tariff options to differentiate the wages regionally. The public sector does not have such options. Due to different regional price levels and economic power, regional differentiation in wage negotioations are also thinkable for the public sector.
Arent, Stefan; Nagl, Wolfgang and Joachim Ragnitz: "Einkommensentwicklung im Freistaat Sachsen", ifo Dresden Studien 61, 2011 Abstract.
Arent, Stefan and Wolfgang Nagl, "Die Brutto- und Tariflohnentwicklung seit 1994 im Vergleich", ifo Dresden berichtet 17 (06), 2010, p. 4-9 ( Abstract / Download ).
Arent, Stefan and Wolfgang Nagl, "Arbeitsplatzrisiken im öffentlichen Dienst und in der Privatwirtschaft", ifo Dresden berichtet 17 (06), 2010, p. 10-16 ( Abstract / Download ).
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