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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))

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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
Date of revision:
Handle: RePEc:iab:iabdpa:200914
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  4. Riphahn, Regina T., 2001. "Cohort Effects in the Educational Attainment of Second Generation Immigrants in Germany: An Analysis of Census Data," IZA Discussion Papers 291, Institute for the Study of Labor (IZA).
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  27. Hanming Fang, 2006. "Disentangling The College Wage Premium: Estimating A Model With Endogenous Education Choices," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 47(4), pages 1151-1185, November.
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