We analyze the determinants of reading literacy, mathematical skills and science skills of young immigrant children in The Netherlands. We find that these are affected by age at immigration and whether or not one of the parents is native Dutch.

This work demonstrates the very existence of economic rents in franchising using, for the first time, the franchisees’ actual financial statements. This finding makes franchising more appealing for applicants and supports the hypothesis that rents are efficient devices to motivate franchisees.