Vierteljahrshefte zur Wirtschaftsforschung 2 / 1975, S. 108-121
Kurt Hornschild
In 1973, the average individual income of persons employed in West Berlin surpassed corresponding earnings in West Germany by 2.5 per cent and fell short of that in Hamburg by 7 per cent. The rate of increase in Berlin was 0.5 percentage points higher than in Hamburg, but one percentage point lower than in the entire Federal Republic of Germany. The trend observed in the past two years toward a relative improvement of incomes in West Berlin thus continued only with regard to Hamburg in 1973. Regional differentials in average incomes are the calculatory result of two groups of factors: variations in compensation for the same work performed and employee structure differences from region to region. After adjustment of interregional income differences for variations in the "wage-earner ratio", for differences in the extent of employment of female workers, and for economic structure differences, the lead over West Germany remains unchanged at 2.5 percentage points. The adjustment enlarges Hamburg's lead over Berlin, however, to 7.5 percentage points.
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