35 Years of German Reunification: The Background and Future of the Expanding East-West Wage Gap

Even if the "Wall" disappears, the salary "gap" remains

The annual wage data for 2024 reveals that the East-West disparity in Germany has widened again. The full-time average in the West is 63,999 euros, while in the East it is 50,625 euros. The difference is 13,374 euros, approximately 21%. Even 35 years after reunification, the wage gap has not been filled; in fact, headlines last year highlighted that it had "deepened." DIE WELTt-online

These figures are reported based on an analysis compiled by RND (Redaktionsnetzwerk Deutschland) using official data from the Federal Statistical Office (Destatis). Multiple national newspapers and economic media, ranging from conservative to liberal, indicated the same level, becoming a widely shared recognition of the facts. RND.detagesspiegel.den-tv.de

Looking at the "thickness" of distribution: Top 1% and bottom 10%

The average alone is difficult to grasp. Looking at the thickness of the distribution, it is reported that the top 1% of full-time workers earn over 213,286 euros annually, while the bottom 10% earn less than 32,526 euros. The national median is 52,159 euros. The gap between the average (arithmetic mean) and the median indicates that the presence of high-income earners is pushing up the overall appearance. de.finance.yahoo.comTRT Global

"A Shameful Settlement" or "Reflection of Structure"

The political reaction was swift. Sahra Wagenknecht of BSW criticized strongly in RND, stating, "In the East, the average is 13,374 euros less annually. It is a 'shameful settlement' 35 years after reunification," and declared that wage disparity would be a key issue for the party. TV and national newspapers also quoted this comment. RND.detagesspiegel.den-tv.de

On the other hand, some arguments emphasize "reflection of structure." The West concentrates headquarters functions and high-value-added industry clusters, and there remain regional differences in collective bargaining coverage (Tarifbindung) and union negotiating power. Due to differences in price and rent levels, comparing real purchasing power is not straightforward—such "reservations" are also persistent. However, the current situation where major media headlines align with "the gap is not narrowing, but rather widening" indicates that the fruits of integration have not sufficiently spread to wages. DIE WELTt-online

Reference: Comparison with the past

As of 2022, the East-West difference was reported to be about 13,015 euros (West 59,257: East 46,242). When compared to the 2024 level, it shows a picture where "nominal wages have risen, but the 'amount' of the gap has also been maintained and expanded." regionalHeute.de

SNS Reactions—Voices Demanding "Equal Pay for Equal Work" and Structural Arguments

This news spread widely on X (formerly Twitter). Symbolic was a post by Wagenknecht herself. She condemned the "13,374 euro annual difference" as a "shameful settlement" and strongly advocated for wage increases and corrections. In response, the slogan "Equal pay for the same work" flooded the timeline. X (formerly Twitter)

Public reactions are polarized.

• Correction Advocates: "A 21% difference is excessive. Raise the East with public investment and wage increases," "Include 'agreement compliance' in public procurement bidding conditions," and other calls for policy-driven corrections. The spread was noticeable, especially among BSW-related accounts. X (formerly Twitter)

• Structural Advocates: "The industrial structure, productivity, and distribution of company headquarters are different. A simple uniform wage increase would undermine competitiveness," and other posts calling for calm. Users residing in the East pointed out that "the difference in living costs has narrowed." X (formerly Twitter)

Additionally, humor and irony are mixed in. "The Wall has fallen, but the salary wall is as 'robust' as a tourist attraction," "Every time the numbers come out, the outflow of talent 'from East to West' comes to mind," and other tones are prominent, indicating that economic news is deeply connected to the sense of life. (The above summarizes the gist of each post)

Why the Gap Remains: Four Lenses

1. Industrial Portfolio: The West concentrates the core of high-value-added sectors such as automobiles, chemicals, and machinery. Supplier networks, research bases, and headquarters functions push up wage levels.

2. Spread of Collective Agreements: There remain regional differences in agreement coverage. In regions with many non-agreement companies, base wages are slow to grow.

3. Skill Mobility and Demographics: The inflow and outflow difference of young and high-skilled individuals affects the "upper side" thickness of the wage distribution.

4. Differences in Prices and Rents: In addition to comparing nominal wages, evaluation in terms of real purchasing power is necessary—however, recently, with rising rents in urban areas, the East-West difference has narrowed, making the nominal wage gap more problematic.

What Can Be Done to Narrow the Gap: Implementable Measures

• Industrial Attraction to the East × Human Resource Policy: Establish "future core industries" such as semiconductors, batteries, and renewable energy in the East. Set research bases and vocational training (dual) together.

• Public Procurement Adhering to Agreements: Incorporate "agreement-level wages" into bidding requirements of national, state, and municipal procurements to suppress wage dumping.

• Visualization of Wage Increase Potential: Use productivity and profit margin data as a common foundation for labor-management negotiations to diagnose "payment capacity."

• Infrastructure × Residential Policy: Integration of commuting areas (highways, railways, digital) and rent control measures that do not offset wage increases.

• Direct Investment in People: Raise wages for public services such as childcare, education, and nursing to stop the outflow of human resources.

Future Watch Points

• Major Labor-Management Negotiations in Fall 2025: Whether the settlement level in export industries such as automobiles and machinery will "spread" to surrounding industries.

• Investment Projects by Eastern State Governments: Approval and job creation for large projects such as semiconductors and batteries.

• Sustainability of Real Wages: How much take-home pay remains after inflation subsides. The long-term high-interest-rate environment is also key.

Conclusion

"Integration" begins with the unification of laws and systems and concludes with wages, the "indicator closest to life." The current figures remind us that the final chapter is still far away. What is needed is not emotional confrontation but consensus building based on data. Not a "pain-sharing" between East and West, but an update of policies and negotiations to enlarge the fruits of growth while thickening the distribution circuit—this is what is required in Germany in 2025. DIE WELTt-online

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