Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/265070 
Year of Publication: 
2021
Citation: 
[Journal:] Economics of Transition and Institutional Change [ISSN:] 2577-6983 [Volume:] 30 [Issue:] 3 [Publisher:] Wiley [Place:] Hoboken, NJ [Year:] 2021 [Pages:] 621-661
Publisher: 
Wiley, Hoboken, NJ
Abstract: 
Job loss expectations were widespread amongst workers in East Germany following reunification with West Germany. Though experiencing a large negative employment shock, East German workers were nevertheless overpessimistic immediately after reunification with respect to their job loss risk. Over time, job loss expectations fell and converged to West German levels, which was driven by a stabilizing economic environment and by an adaptation of the interpretation of economic signals with workers learning to distinguish individual risk from firm‐level risk. In fact, conditional on actual job loss risk, East German workers quickly caught up to West Germans regarding the share of correctly predicted job losses.
Subjects: 
expectations
job loss
transition economies
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Article
Document Version: 
Published Version

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