This paper analyses the effect of local crime rates on the mental well-being of residents. Our identification strategy addresses the problem of sorting, and endogenous moving behaviour. We find that crime causes considerable mental distress of residents, and that these effects are mainly driven...

Existing evidence on peer effects in a work environment stems from either laboratory experiments or from real-word studies referring to a specific firm or specific occupation. Yet, it is unclear to what extent these findings apply to the labor market in general. In this paper, therefore, we...

This paper challenges the view that the wage structure in West-Germany has remained stable throughout the 80s and 90s. Based on a 2 % sample of social security records, we show that wage inequality has increased in the 1980s, but only at the top of the distribution. In the early 1990s, wage...

This paper analyzes the life-cycle career costs associated with child rearing and decomposes their effects into unearned wages (as women drop out of the labor market), loss of human capital, and selection into more child-friendly occupations. We estimate a dynamic life-cycle model of fertility,...

This paper first presents a brief historical overview of immigration in Europe. We then provide (and distinguishing between EU and non-EU immigrants) a comprehensive analysis of the skill structures of immigrants and their labor market integration in the different European countries, their...

In this paper, we investigate how changes in the skill mix of local labor supply are absorbed by the economy. We distinguish between three adjustment mechanisms: through factor prices, through an expansion in the size of those production units that use the more abundant skill group more...

Despite its efficiency in tailoring education to the needs of students, a tracking system has the inherent problem of misallocating students to tracks because of incomplete information at the time of the tracking decision. This paper investigates the effects of attending a more advanced track in...

This paper studies parental investment in education and intergenerational earnings mobility for father-son pairs with native and foreign born fathers. We illustrate within a simple model that for immigrants, investment in their children is related to their return migration probability. In our...

This paper presents a life cycle model for the demand for health, and derives empirical specifications that distinguish between permanent and transitory wage responses. Using panel data, we estimate dynamic health and health input demand equations. We find evidence of negative transitory wage...

This paper uses two recent UK surveys to investigate labour market performance, the determi-nants of language proficiency, and the effect of language on earnings and employment prob-abilities of non-white immigrants. Our results show that language acquisition, employment prob-abilities, as well...