Information asymmetry, education signals and the case of ethnic and native Germans

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 2683

Classification and Topics

• Classification: Wirtschaft ; Human Capital; Skills; Occupational Choice; Labor Productivity ; Wage Level and Structure; Wage Differentials ; International Migration
• Subject: sorting theory ; human-capital theory ; returns to education ; migration ; Bildungsniveau ; Signalling ; Bildungsertrag ; Lohnstruktur ; Aussiedler ; Theorie ; Deutschland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hornig, Stephan O. ; Rottmann, Horst ; Wapler, Rüdiger
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/30673
• Last update: 10.03.2025, 11:45 AM CET