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


  • Hornig, Stephan O.
  • Rottmann, Horst
  • Wapler, Rüdiger

    () (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])


"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))

Suggested Citation

  • Hornig, Stephan O. & Rottmann, Horst & Wapler, Rüdiger, 2009. "Information asymmetry, education signals and the case of Ethnic and Native Germans," IAB Discussion Paper 200914, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  • Handle: RePEc:iab:iabdpa:200914

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    References listed on IDEAS

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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.

    More about this item


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

    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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