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EQUALITY OF OPPORTUNITY: EAST VS. WEST GERMANY
Authors:Andreas Peichl  Martin Ungerer
Affiliation:1. ZEW, University of MannheimIZA and CESifo;2. ZEW and University of Cologne
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  D63  H2  J62  J7
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