Introduction: Regional Disparities in Employment Growth and Unemployment; Overview of the Study.- Employment in an Interregional Equilibrium: Local Factors and Increasing Returns; Economies of Agglomeration; Localization Economies from the Variety of Goods; Knowledge Spillovers and Dynamic Externalities; Empirical Implictions for th Employment Pattern.- Employment Location in German Manufacturing: The regional Distribution of Employment; The Regional Development of Employment; Implications for the Labor Market.- Interregional Migration in Germany: General Aspects of Migration and Employment; Local Determinants of Regional Migration.- Regional Wage Formation: Sources of Regional Wage Flexibility; Regional Wages and Central Wage Bargaining.- Regional Wage Flexibility in Germany: Existing Studies in the German Case; Empirical Analysis for West Germany's Districts.- Summary and Outlook.