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...

We examine the dynamic role of education and experience as determinants of wages. It is hypothesized that an employee's education is an important signal to the employer initially. Over time, the returns to schooling should decrease with labour market experience and increase with initially...

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 uses the immigration sample of the German Socioeconomic Panel to analyse the earnings and unemployment assimilation of ethnic Germans who entered West Germany within the last ten years. The empirical analysis suggests that there is no earnings differential between immigrants from...