This Paper addresses the question: why and where do immigrants cluster? We examine the relative importance and interaction of two alternative explanations of immigrant clustering: (1) network externalities and (2) herd behavior. We advance the theory by presenting a framework encompassing both...

The Paper examines real and nominal wage rigidities. We estimate a switching regime model, in which the observed distribution of individual wage changes, computed from West German register data for 1976-97, is generated by simultaneous processes of real, nominal or no wage rigidity, and...

This paper analyses the determinants and timing of return migration. Special attention is given to the role of social and informational migration networks. A simple theoretical model of temporary migration demonstrates that the effect of migration networks on optimal migration duration is...

Based on a large employer-employee matched dataset, the Paper investigates the effects of variable enforcement of German dismissal protection legislation on the employment dynamics in small establishments. Specifically, using a difference-in-differences approach, we study the effect of changes...

Empirical studies in the migration literature have shown that migration enclaves (networks) negatively affect the language proficiency of migrants. These studies, however, ignore the choice of location as a function of language skills. Using data on Mexican migration to the US, we show that...

Deutschland befindet sich in einem harten internationalen Wettbewerb um qualifizierte Arbeitskräfte. Dabei steht der aktuelle Fachkräftemangel nur scheinbar im Gegensatz zu einer anhaltend hohen Arbeitslosigkeit von Geringqualifizierten. Gewichtige demographische Argumente sprechen für eine...