We analyse the convergence and heterogeneity of living standards between East and West Germany since unification. Based …, including retirees and the unemployed, of East and West Germany over the fifteen years for which data are available. Using a … highest negative income gap. This probably reflects out-migration from East Germany by the young and highly skilled. On the …

&D investment and firm employment, and to address important econometric issues, which is not possible in the standard estimation …

possible in the standard estimation approach used in the previous literature. Our results confirm that the relationship between …