"In 2006, total labor costs per full-time employee amounted to 53,840 euro annually in theWest German manufacturing industry. In East Germany the amount was 35,290 euro, twothirdsof the West German level. This cost advantage has remained relatively stable overthe last few years. Within the German service sector labor costs in 2006 varied between34,550 euro in retail trade and 68,750 euro in insurance. The overall cost structure changedlittle. Employer-based contributions to health insurance, fixed supplementary payments andother non-wage labor costs rose slightly less than wages. For the first time, the IW Kölnalso calculated the share of labor costs which is determined by legal requirements and cannotbe agreed upon voluntarily by the contracting parties. The former make up 25.2 percentof total labor costs in manufacturing in West Germany and 27.1 percent in East Germany.This share has remained almost unchanged since the beginning of the 1990s."

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