The employment rates of non-EU immigrants compared to natives in Belgium continue to be low. In this chapter we examine whether differences in educational attainments offer an adequate explanation for these persisting labour market disadvantages. We decompose the gap in labour market outcomes...

Governments introducing output parameters in the funding rule of universities believe that it will induce universities to raise their teaching efforts while educational standards will remain unaffected. We show that this presupposes positive interaction effects between students’ abilities,...