Analysis and Optimization of Labor Market Policy in East Germany After German Reunification

Abstract

The merger of East and West Germany in 1991 was a very important event in world history and had a great impact not only on the world but also on Germany itself. In particular, the transition of the former GDR is of great concern. Among them, the labor market problem in eastern Germany is one of the important challenges that the former GDR has to face in the transition. Using documentary and comparative analysis, this paper focuses on the excessive unemployment rate and the lack of public welfare policies in the labor market of eastern Germany after 1991. This paper aims to analyze whether the policies adopted by the German government to alleviate the problem are effective in the long run. Although these policies were controversial at the beginning of their implementation, some scholars consider them a failure. However, in view of the current development, these policies are beneficial and feasible for developing the eastern part of Germany in the long run.