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Title:Information asymmetry, education signals and the case of ethnic and native Germans PDF Logo
Authors:Hornig, Stephan O.
Rottmann, Horst
Wapler, Rüdiger
Issue Date:2009
Series/Report no.:CESifo working paper 2683
Abstract:This paper analyses the effects of education signals for Ethnic Germans and Germans without a migration background (Native Germans”). We base our analysis on a sorting model with productivity enhancing effects of education. We compare whether the signalling value differs between the migrants and non-migrants in the German labour market. Starting from the theoretical result that only a separating equilibrium can exist, we find substantial empirical differences between Ethnic and Native Germans with the same formal education level. This empirical analysis is done with a completely new dataset based on administrative data from the German Federal Employment Agency.
Subjects:sorting theory
human-capital theory
returns to education
migration
JEL:J24
J31
F22
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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