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

Stephan O. Hornig, Horst Rottmann and Rüdiger Wapler

No 2683, CESifo Working Paper Series from CESifo

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.

Keywords: sorting theory; human-capital theory; returns to education; migration (search for similar items in EconPapers)
JEL-codes: F22 J24 J31 (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Working Paper: Information asymmetry, education signals and the case of Ethnic and Native Germans (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_2683

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