One of the most important areas of taxation is the personal income tax, which may have a gender-differentiated effect on work incentives and infl uence the distribution of paid and unpaid work between men and women.

The unification of the two German states within a relatively short period of time now appears inevitable. Yet there is no historical precedent for a successful transformation from a socialist to a market economy. Doubts have been voiced by some as to whether such a transformation is possible....