Studies on the underlying mechanisms of social mobility commonly find that half of the intergenerational earnings persistence remains unexplained. Focusing on the phenomenon of overqualification, this study examines a transmission channel that might operate beyond the mechanisms previously...

We estimate peer effects for fourth graders in six European countries. The identification relies on variation across classes within schools. We argue that classes within primary schools are formed roughly randomly with respect to family background. Similar to previous studies, we find sizeable...

Virtually all empirical firm-level studies on the demand for labor do not include labor cost in the econometric specification. This is due to the fact that business and innovation survey data usually lack information on labor cost. This paper shows how reliable skill-specific and firm-specific...