Publication

This paper examines the economic determinants of interregional migration between Germany's regions after reunification in 1989. It focuses on the period 1993 to 1995. The paper finds that wage convergence occurred much more rapidly than the convergence of unemployment rates between the various regions of East and West Germany. Moreover, it finds that while housing and infrastructure variables play an important role at the margins, wage convergence does help stem the loss of human capital from East German regions to West Germany.