Hornig, Stephan O. Rottmann, Horst Wapler, Rüdiger
Year of Publication:
CESifo Working Paper 2683
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.
sorting theory human-capital theory returns to education migration