This study deals with disparities in employment growth, unemployment, and wages between regional labour markets in Germany. Throughout the book, theoretical analysis is combined with rigorous empirical testing using a large set of regional data at district level.

It is dealt with disparities in employment growth, unemployment, and wages between regional labor markets in Germany. First, endogenous formation and growth of industry locations due to agglomeration economies is established as a basic source of disparity in employment. Then, spatial frictions and local wage inflexibility due to central wage bargaining are detected as causes of unemployment disparities. Throughout the book theoretical analysis is combined with rigorous empirical testing using a large set of regional data at district level. In order to gain and robustify empirical results, recent methods in panel econometrics and spatial data analysis are employed. An overview on the extent of key regional labor market disparities in Germany is given. The book enables to assess our current understanding of the role of locational issues in causing those disparities, and thus to understand the basic justification of regional policy.

Introduction
Employment in an Interregional Equilibrium
Employment Location in German Manufacturing
Interregional Migration in Germany
Regional wage Formation
Regional Wage Flexibility in Germany
Summary and Outlook.