Published Journal of Monetary Economics Online 1 Apr 2026 Published Apr 2026Biased expectations and labor market outcomes: Evidence from German survey data and implications for the East–West wage gapAlmut Balleer · Georg Duernecker · Susanne Forstner · Johannes GoenschThe paper asks two questions: (1) How do workers' biased expectations about job finding and job separation shape the labor market equilibrium and wages? (2) Are differences in expectation biases …