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Information asymmetry, education signals and the case of Ethnic and Native Germans

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Author Info
Hornig, Stephan O.
Rottmann, Horst
Wapler, Rüdiger () (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])

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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." (author's abstract, IAB-Doku) ((en))

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Paper provided by Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] in its series IAB Discussion Paper with number 200914.

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Length: 29 pages
Date of creation: 17 Jul 2009
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Handle: RePEc:iab:iabdpa:200914

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Keywords: integrierte Erwerbsbiografien; Bildungsniveau; Bildungsabschluss; Inländer; Aussiedler; Hochqualifizierte; mittlere Qualifikation; Niedrigqualifizierte; Lohnhöhe; Lohnunterschied;

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Find related papers by JEL classification:
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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    Other versions:
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  17. Tucker, Irvin III, 1986. "Evidence on the weak and the strong versions of the screening hypothesis in the United States," Economics Letters, Elsevier, vol. 21(4), pages 391-394. [Downloadable!] (restricted)
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    Other versions:
  22. Weiss, Andrew, 1995. "Human Capital vs. Signalling Explanations of Wages," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 133-54, Fall. [Downloadable!] (restricted)
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