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German reunication was a positive market access shock for both East and West Germany. Regions that for 45 years had … experienced a decline in population due to their loss in market access following the division of Germany of WWII were most … value of land in West Germany. We find that regions in the immediate border area experienced a relative rise in land prices …
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The paper argues that economic integration causes problems for the labor market of high-wage countries due to cross-border labor mobility and the accompanying increase in labor supply. Empirical evidence is provided from an analysis of regional labor market effects of German re-unification. In...
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