The large regional variation in minimum wage levels in the period 2002-08 in China implies that Chinese manufacturing firms experienced competitive shocks as a function of firm location and their low-wage employment share. We find that minimum wage hikes accelerate the input substitution from...

In contrast with the experiences of the United Kingdom and the United States, the distribution of labour and capital income has changed sharply in favour of capital in most Continental European and Nordic countries during the past two decades. We examine forces behind the evolution of the...

A political miracle occurred when Germany was reunited, and at first glance an economic miracle has followed. Real incomes in the eastern area have now reached the western level, and investment per capita has been much higher than in the west. However, every third deutschmark spent in the east...