Michael Spence: Policy Lessons from Germany (5/5)

The video discusses Germany's economic transition compared to the US, highlighting Germany's success in maintaining employment in the tradeable sector. It addresses Germany's productivity and competitiveness challenges post-2000, involving political and business efforts to enhance labor market flexibility. The impact of supply chains on income distribution in Europe is explored, emphasizing the role of skilled workers from Eastern Europe. The discussion concludes with the importance of global economic integration and the challenges it presents.

How did the global economy impact Germany's labor market and competitiveness?

In what ways did Germany address the income distribution question during its economic reforms?

What are the implications of the leveling effect on income distribution due to skilled labor from Eastern Europe?