and that the labor demand shock studied in this paper was relevant to them.

In a final step, the sample is further restricted to women who on January 1st, 1991,

worked in East Germany and have non-missing industry information. 12 January 1st,

1991, which is about three months after the German reunification on October 3rd 1990,

is the first point in time for which industry information is known for a subsample of East

Germans. This results in a loss of sample size since only 51 percent of employed East

German women have non-missing industry information on January 1st, 1991. The main

final sample consists of 4,234 women. Summary statistics for this sample are provided in

Table 1.

To explain the final selection criterion, the East German labor administration became

part of the Federal Employment Agency after the German reunification in October 1990

and in the course of a complex process (Schmid and Oschmiansky, 2007). For some firms

industry information was reported already in 1991, whereas this information is available

for all East German firms from 1992 onwards. It is, however, crucial to infer industry

information for the earliest point in time possible. To begin with, industries are only

observed for persons who work. Unemployment rates rapidly increased from 9.5 percent

among East German women in January 1991 to 20.5 percent a year later (Bundesagentur

für Arbeit, 2015). In addition, the earlier that industries are observed, the fewer workers

that will have changed industries. Figure 4, which has been discussed before, shows that

some employment losses occurred already in the first year after the fall of the wall, but

the most pronounced employment losses took place after the first year. Using industry

information from January 1st, 1991, thus seems to be a good approximation of industries

prior to the fall of the wall. Finally, it makes sense to exclude the year of 1990, because

the fertility decline was not apparent during most of 1990.

A remaining concern is the representativeness of the sample distribution over industries.

For example, at the sectoral level, the sample share of women working in mining is suspiciously

large and the sample share working in services appears to be too small. To correct

for discrepancies between the sample distribution and the population distribution, I use

the Microcensus of 1991 as an auxiliary data source. In the Microcensus, I identify women

12 Only women were selected with an East German contributory period to pension entitlements

on January 1st, 1991. Among these, workers with non-missing industry information had a mean

age of 24.6 (st. dev. of 4.1) in January 1991; which is similar to the mean age of 25.0 (st. dev.

of 4.0) of workers with missing industries.


More magazines by this user
Similar magazines