Transferability of Human Capital and Immigrant Assimilation – An Analysis for Germany

This paper investigates the transferability of human capital across countries and the contribution of imperfect human capital portability to the explanation of the immigrant-native wage gap. Using data for West Germany, our results reveal that, overall, education and labor market experience accumulated in the home countries of the immigrants receive signicantly lower returns than human capital obtained in Germany. We further fi nd evidence for heterogeneity in the returns to human capital of immigrants across origin countries. Finally, imperfect human capital transferability appears to be a major factor in explaining the wage diff erential between natives and immigrants.Human capital; rate of return; immigration; assimilation

External Eff ects of Education: Human Capital Spillovers in Regions and Firms

Using a matched employer-employee panel dataset for Germany, we analyze the external eff ects of education on individual wages. Following the basic framework of Moretti (2004), we allow spillover eff ects to occur both within a specifi c fi rm and a specifi c region rather than analyzing spillover eff ects only on a regional level. Controlling for individual- and fi rm-specifi c fi xed eff ects and using an instrumental variable strategy, our results confi rm the existence of positive but small external eff ects of human capital. Positive spillover eff ects within fi rms occur only for the group of high-skilled workers.External eff ects; human capital; employer-employee matched data

The Purpose of Remittances – Evidence from Germany

This paper examines the purpose of remittances using individual data of migrants in Germany. Particular attention is paid to migrants’ savings and transfers to family members in the home country. Our findings indicate that migrants who intend to stay in Germany only temporarily have a higher propensity to save and save larger amounts in their home country than permanent migrants. A similar picture emerges when considering migrants’ payments to family members abroad. The results of a decomposition analysis indicate that temporary and permanent migrants seem to have different preferences towards sending transfers abroad, while economic characteristics and the composition of households in home and host countries are less relevant.International migration, savings, remittances

Report No. 3: Assessment of Possible Migration Pressure and its Labour Market Impact Following EU Enlargement to Central and Eastern Europe

Study for the Department for Education and Employment of the United Kingdom, Bonn 1999 (117 pages).

Performance-related Funding of Universities – Does more Competition Lead to Grade Inflation?

German universities are regarded as being under-financed, inefficient, and performing below average if compared to universities in other European countries and the US. Starting in the 1990s, several German federal states implemented reforms to improve this situation. An important part of these reforms has been the introduction of indicator-based funding systems. These financing systems aimed at increasing the competition between universities by making their public funds dependent on their relative performance concerning different output measures, such as the share of students obtaining a degree or the amount of third party funds. This paper evaluates whether the indicator-based funding created unintended incentives, i.e. whether the reform caused a grade inflation. Estimating mean as well as quantile treatment effects, we cannot support the hypothesis that increased competition between universities causes grade inflation.Grade inflation; higher education funding; university competition

WTP vs.WTA: Christmas Presents and the Endowment Effect

Using data on the valuation of Christmas gifts received by students in different fields at a German university, we investigate whether the endowment effect differs between students of economics and other respondents and whether it varies with the market price of the object under consideration.Our estimation results suggest that economics students have both, a significant lower WTP andWTA, indicating that existing studies on the efficiency loss of holiday gifts and experimental studies on the endowment effect that rely on data from economics students may be biased. The result further indicate that the endowment effect is independent of the market price of the object.Loss aversion, endowment effect, Christmas presents, deadweight loss

Ungerechte Gerechtigkeit

Am 16. November 2007 hat der Bundestag mit der Mehrheit von Union und SPD die Verlängerung des Arbeitslosengeldes I (Alg I) für Ältere beschlossen. Mit dieser Verlängerung steigt die Bezugsdauer von Alg I für über 50-Jährige Arbeitslose mit mindestens 30 Beitragsmonaten auf 15 Monate, für über 55-Jährige mit mindestens 36 Versicherungsmonaten auf 18 Monate und für über 58-Jährige mit mindestens 48 Versicherungsmonaten auf 24 Monate. Die Verlängerung des Alg I stellt einen weiteren Schritt in einer Reihe von Veränderungen der Bezugsdauer von Arbeitslosengeld für ältere Arbeitslose dar. Bis Ende 1984 wurde das Arbeitslosengeld für alle gemeldeten Arbeitslosen für maximal 12 Monate gewährt. Von 1985 bis 1987 wurde die Bezugsdauer für Ältere unter der Regierung von Kanzler Kohl sukzessive verlängert. Ab Juli 1987 konnten Arbeitslose ab einem Alter von 43 Jahren bis zu 18 Monate, ab einem Alter von 44 Jahren bis zu 22, mit Vollendung des 49. Lebensjahrs bis zu 26 und mit 55 Jahren gar bis zu 32 Monate lang Arbeitslosengeld beziehen. Mit dem dramatischen Anstieg der Arbeitslosigkeit in den 1990er Jahren wurden diese Regelungen teilweise wieder zurückgenommen. Ab 1997 hatten nur noch über 57-Jährige Anspruch auf bis zu 32 Monate Arbeitslosengeld. Im Umfeld der Agenda 2010 und den damit verbundenen Hartz-Gesetzen kam es dann zu einer einschneidenden Verkürzung der Bezugszeiten von Arbeitslosengeld. Mit Wirksamkeit zum 1. Februar 2006 hatten nur noch über 55-Jährige Arbeitslose Anspruch auf verlängerte Bezugszeiten. Sie konnten bis zu 18 Monate lang Alg I erhalten. Mit der jetzigen Entscheidung wurde diese Verkürzung allerdings relativ rasch wieder zurückgenommen

Labor Market Effects of Immigration: Evidence from Neighborhood Data

This paper combines individual-level data from the German Socio-Economic Panel (SOEP) with economic and demographic postcode-level data from administrative records to analyze the effects of immigration on wages and unemployment probabilities of high- and low-skilled natives. Employing an instrumental variable strategy and utilizing the variation in the population share of foreigners across regions and time, we find no support for the hypothesis of adverse labor market effects of immigration.

Neighborhood Eff ects and Individual Unemployment

Using a unique dataset for Germany that links individual longitudinal data from the GSOEP to regional data from the federal employment agency and data of real estate prices, we evaluate the impact of neighborhood unemployment on individual employment propects. The panel setup and richness of the data allows us to overcome some of the identifi cation problems which are present in this strand of literature. The empirical results indicate that there is a signifi cant negative impact of neighborhood unemployment on the individual employment probability.Social interactions; unemployment; neighborhood characteristics

Dismissal protection and worker flows in small establishments

"Based on a large employer-employee matched data set, the paper investigates the effects of variable enforcement of German dismissal protection legislation on the employment dynamics in small establishments. Specifically, using a difference-in-differences approach, we study the effect of changes in the threshold scale exempting small establishments from dismissal protection provisions on worker flows. In contrast to the predictions of the theory, our results indicate that there are no statistically significant effects of the dismissal protection legislation on worker turnover." (Author's abstract, IAB-Doku) ((en))Kleinbetrieb, Kündigungsschutz, IAB-Linked-Employer-Employee-Datensatz, zwischenbetriebliche Mobilität