In 1997 GDP per capita in East Germany was 57% of that of West Germany, wage rates were 75% of western levels, and the … bring convergence, labor flows would respond, enhancing overall efficiency. Yet net emigration from East Germany has fallen … from high levels in 1989-1990 to close to zero. Using state-level data for all of Germany, available from 1991-1996, I am …

Italy and Germany have similar geographical differences in productivity – North more productive than South in Italy …; West more productive than East in Germany – but have adopted different models of wage bargaining. Italy sets wages based on … nationwide contracts that allow for limited local wage adjustments, while Germany has moved toward a more flexible system that …

reduce inequality. We study the local and aggregate effects of collective bargaining in Italy and Germany. The two countries … West more productive than the East in Germany – but have adopted different models of wage bargaining. Italy sets wages … based on nationwide contracts that allow for limited local wage adjustments, while Germany has moved toward a more flexible …