This paper revisits the question: will Eastern Germany become a new Mezzogiorno? Building upon the established analysis of East Germany's disappointing economic performance since unification, when wages were allowed to far outstrip productivity, the purpose of this work is to provide fresh...

This paper presents a way to explore how macroeconomic shifts cause inequality changes. It is based on the backwardness observed in the agricultural sector in rural areas. It shows why highly dualistic economies tend to be more unequal than economies with flexible and integrated labour markets....