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Information Asymmetry, Education Signals and the Case of Ethnic and Native Germans

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  • Stephan O. Hornig
  • Horst Rottmann
  • Rüdiger Wapler

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.

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Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 2683.

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Date of creation: 2009
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Handle: RePEc:ces:ceswps:_2683

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Keywords: sorting theory; human-capital theory; returns to education; migration;

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References

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Cited by:
  1. Michael Funke & Marc Gronwald, 2009. "A Convex Hull Approach to Counterfactual Analysis of Trade Openness and Growth," CESifo Working Paper Series 2692, CESifo Group Munich.

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