We analyze dynamics of structural change driven, for instance, by technological progress or rearrangements in the institutional framework. Structural change causes prosperity and demise of regions, industries, and firms, and we use microeconometric methods to empirically assess these effects. The focus is on productivity, innovation, and labour market outcomes such as employment, wages, or educational decisions. We devote special attention to the transformation process of the East German regions, initiated by the Fall of the Berlin Wall and the German unification.

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