High Unemployment in Germany: Why do Foreigners Suffer Most?

In Germany, immigrant unemployment is not only higher than native unemployment; italso reacts more to changes in the situation on the labor market. Decomposing the gapbetween native and immigrant unemployment into a baseline and a labor-marketsituation component, I find that the unemployment rate of immigrants would lie at 5.6 percentagepoints for zero native unemployment (the baseline component of the gap). Anincrease in overall unemployment by 1 percentage point leads to a 0.7 percentage pointshigher increase in immigrant unemployment than in native unemployment (the situationcomponent). The large part of this difference, about 3/4 of the baseline and 4/5 of thesituation component, can be explained by differences in the endowments with classicalhuman capital (educational degrees and experience) between immigrants and natives.Also controlling for country-specific human capital, particularly language skills, thesituation component becomes insignificant and the baseline effect again decreases by1/2. Adding controls for social networks, the baseline effect also becomes insignificant.Thus, human capital and social networks can possibly fully explain the differencebetween native and immigrant unemployment in Germany.Immigration, integration, unemployment, human capital, language skills, discrimination, social networks

Does Educational Choice Erode the Immigration Surplus?

Many countries pursue an immigration policy that is targeted at attracting high skilled workers. Borjas (1995) has shown that assuming perfect labor markets immigration leads to a welfare gain for the native population, the so-called immigration surplus. Thus, as the labor market for high skilled workers exhibits few frictions, high skilled immigration should lead to a welfare gain. Nevertheless, this argumentation implicitly assumes that immigration has no influence on the qualification structure of natives. In this paper I show that if natives anticipate high skilled immigration, fewer natives acquire a high education level. In labor markets that are not frictionless this effect can be such strong that high skilled immigration leads to a welfare loss for natives. Moreover, if high skilled migration is expected but not realized, this expectation generates a welfare loss.Immigration, native welfare, education structure, immigration surplus.

The Air Force concentrating photovoltaic array program

A summary is given of Air Force solar concentrator projects beginning with the Rockwell International study program in 1977. The Satellite Materials Hardening Programs (SMATH) explored and developed techniques for hardening planar solar cell array power systems to the combined nuclear and laser radiation threat environments. A portion of program dollars was devoted to developing a preliminary design for a hardened solar concentrator. The results of the Survivable Concentrating Photovoltaic Array (SCOPA) program, and the design, fabrication and flight qualification of a hardened concentrator panel are discussed

Who has been affected, how and why? The spillover of the global financial crisis to Sub-Saharan Africa and ways to recovery

This paper first presents a comprehensive analysis of the significance of different transmission channels of the global economic and financial crisis to Sub-Saharan African countries. It then examines the repercussions of the crisis for the growth of gross domestic product (GDP) and its components; this is complemented by a study of the responses of monetary and fiscal authorities to the challenges posed by the crisis, both in regional terms and on the basis of selected country case studies. Finally, the paper highlights medium-term to long-term challenges for ensuring a sustainable recovery and for fostering resilience against potential future shocks.The authors find that the intensity of the impact of the crisis varies widely across countries, with a lack of export diversification apparently having been particularly conducive to its transmission. However, the analysis of the magnitude of the observed swings in macroeconomic variables also reveals that although they were large, they were not exceptional and are comparable to fl uctuations Sub-Saharan Africa has witnessed in the recent past. Furthermore, in a non-negligible number of instances the extent of the slowdown seems to have been determined by domestic factors as well. Particularly, policies and conditions prior to the global recession, rather than crisis contagion per se, appear decisively to have shaped the scope of possible responses in many cases.As a result, many of the policy lessons Sub- Saharan Africa might draw from the crisis do not involve radical deviation from the policies in place before. Efforts to improve the management of resource revenue for commodity-dependent countries, necessary reforms of the economic and business environment to enable a diversification of the export base, and further regional integration might help to alleviate possible future external shocks. Additionally, the crisis re-emphasises the need to back growth prospects by redefining sectoral priorities. JEL Classification: E52, E31, D84balance of payments, Global economic crisis, intern. spillover, Regional growth, Sub-Saharan Africa

Securing the state, undermining democracy: internationalization and privatization of western militaries

Changes in the field of security since the 1990s triggered off a number of still continuing military transformations in liberal democracies. Since their armed forces were designed for the purposes of the bipolar Cold war security constellation, they have been “redesigned” according to the new tasks as agreed upon in the new NATO strategic concepts or the assignments for the Europeanized forces within the European Union: Conflict prevention, crisis intervention, counter-terrorism have been added to the range of deployment missions. This recent transformation of the armed forces is pushed ahead in the political spirit of new public management well known from other policy areas in the OECD countries. The proclaimed reforms are guided by efficiency and effectiveness principles only, issues of democratic control and integration of the armed forces into the society are marginalized in the political discourse. But integration and cooperation within international organizations is only one of the two trends detrimental to democratic control of the military; increasing contracting with Private Security and Military Companies is the other. Contracting is intended to reduce political and financial costs and risks for Western governments. The authors argue that, in the long run, both trends of privatization and internationalization, though they seem to run into opposite directions from a purely etatist perspective, result in the joint effect of exacerbating democratic control and accountability of security policies. This point is illustrated by the employment of private military companies by the US government agencies and US military and the reform of the German armed forces. -- Seit Ende des Ost-West-Konflikts befinden sich die westlichen Streitkräfte in einem anhaltenden Transformationsprozess. Waren die Streitkräfte zuvor an der bipolaren Sicherheitskonstellation des Kalten Krieges ausgerichtet, werden sie seit 1990 umstrukturiert, um neue Missionen zu erfüllen, wie sie in den strategischen Konzepten der NATO oder den Aufgabenfeldern der Europäischen Sicherheits- und Verteidigungspolitik definiert sind. Unter den Vorzeichen eines New Public Managements vorangetrieben, das in den letzten Jahrzehnten als ökonomisch inspiriertes Reformprinzip bereits zahlreiche andere Politikfelder der OECD-Staaten geprägt hat, sind die Umstrukturierungen der Streitkräfte vorwiegend an Effizienz- und Effektivitäts-Gesichtspunkten orientiert. Fragen der demokratischen Kontrolle und der Integration des Militärs in die jeweilige Gesellschaft werden dagegen im politischen Diskurs vernachlässigt. Zwei Entwicklungstrends kennzeichnen derzeit die westliche Sicherheits- und Verteidigungspolitik: die Integration und Kooperation westlicher Streitkräfte im Rahmen von internationalen Organisationen sowie der zunehmende Einsatz privater Sicherheitsunternehmen. Obwohl Internationalisierung und Privatisierung von Sicherheitspolitik in einer staatszentrierten Perspektive auf den ersten Blick gegenläufige Tendenzen einer Stärkung der Exekutive einerseits und der Schwächung des Staates andererseits zu markieren scheinen, tragen jedoch beide zu einer Schädigung der nationalstaatlichen Demokratie bei. Diese These erläutern die Autorinnen anhand des vermehrten Rückgriffs der US-amerikanischen Regierung auf private Sicherheitsanbieter sowie der Transformation der deutschen Streitkräfte.

The international role of the euro - evidence from bonds issued by non-euro area residents

This paper analyses the main features of the market for euro-denominated bonds issued by non-euro area residents on the basis of a new database. It shows that large private corporations from mature economies have contributed significantly to the internationalisation of the euro since 1999, more than sovereigns in transition and emerging economies, whose part was initially expected to be stronger. It confirms that the euro’s international role is characterised by a strong regional focus, being most prominent in countries located in the immediate vicinity of the euro area. In particular, the paper provides ample evidence that the City of London plays a key role in the market for euro-denominated bonds issued by non-euro area residents, be it on the supply side, the demand side or as an intermediary. When it comes to demand, the paper shows that the euro’s reach in the rest of the world has been more limited thus far, notwithstanding some recent interest in Asia. Finally, the paper finds evidence that the international role of the euro has, to some extent, been driven by the euro area itself, with euro area investors being significant purchasers of euro-denominated bonds issued by non-euro area residents.

How do Migrants Choose their Destination Country? An Analysis of Institutional Determinants

For a long time, migration has been subject to intensive economic research. Nevertheless, empirical evidence regarding the determinants of migration still appears to be incomplete. In this paper, we analyze the effects of socio-economic and institutional determinants, especially labor-market institutions, on migrants' choices. Based on a large data set constructed from micro-data for France, Germany, the UK and the US, we study their decisions to migrate to one of the four countries using a Multinomial Choice framework. Our estimates confirm a number of conventional results such as positive effects of wages and immigrant networks and negative effects of unemployment rates. In addition, we find that employment protection, union coverage and unemployment benefits have positive effects on migration. Also good education and health systems tend to attract migrants, while generous pension systems may deter them. Based on separate estimations for high- and low-skilled migrants, there is evidence that the effects of labor-market institutions differ across skill groups.migration, labour-market institutions, micro-data, Multinomial Choice