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On regional convergence in a transitional economy: the roles of migration and wages.

G A Horn

    Jahrbucher Fur Nationalokonomie Und Statistik
    |September 1, 1993
    PubMed
    Summary

    Migration

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    Area of Science:

    • Economics
    • Regional Science
    • Labor Economics

    Background:

    • Post-reunification Germany provides a unique case study for regional economic convergence.
    • Internal migration patterns significantly influence economic disparities between regions.

    Purpose of the Study:

    • To analyze the impact of migration on regional economic convergence.
    • To investigate the relationship between migration, wage formation, and per capita output.

    Main Methods:

    • Analysis of regional wage formation mechanisms.
    • Examination of convergence independent of productivity movements.
    • Assessment of social costs associated with wage adjustments.

    Main Results:

    • The impact of wage mechanisms on per capita output convergence is ambiguous.
    • Wage adjustments independent of productivity growth lead to high social costs.

    Conclusions:

    • Migration's role in regional convergence is complex and influenced by wage mechanisms.
    • Policies linking wage adjustments to productivity are crucial to mitigate unemployment.
    Keywords:
    Demographic FactorsDeveloped CountriesEconomic DevelopmentEconomic FactorsEmploymentEuropeGeographic FactorsGermanyMacroeconomic FactorsMigrationPopulationPopulation DynamicsWagesWestern Europe

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