In the first half of the 1990s, the debate on Germany's high labour costs flared up again as part of the discussion on Germany as an industrial location. With the strong depreciation of the D-Mark in the past two years and the change of course in wage policy, this debate has now subsided again to a certain extent. However, great attention is still paid to international labour cost comparisons, particularly as they often produce quite varied results. How are these differences to be explained? What are the problems involved in making international labour cost comparisons?
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