setting due to labor cost and straitjacket effects. As firms in Germany are allowed to choose their wage formation regime, we … test these two hypotheses with representative establishment data for West Germany. We find that establishments with …

major immigration reforms in Germany, a country with a relatively weak record of immigrant assimilation. For identification … after eight years of residency in Germany, while adults faced a 15-year residency requirement. Since 2000, all immigrants … performance. Based on the eligibility rules, we find few returns of citizenship for men, but substantial returns for women …