Despite the relatively extensive research on pay levels and the consequences of income disparities, little is known about which reference groups people choose for comparative evaluation of personal income and why different selection patterns emerge. The aim of this paper is to dig deeper for...

The German practice of compelling weak students to repeat a class has come under heavy criticism recently. Many observers fear that this practice is, at best, useless or even counterproductive. However, little is known so far on the consequences of having to repeat a class, as compared to be...

We evaluate the effect of the federal students' financial assistance scheme (BAfoeG) on enrolment rates into higher education by exploiting the exogenous variation introduced through a discrete shift in the repayment regulations. Supported students had to repay the full loan until 1990....