Using PIRLS 2001 and PISA 2003 data for Germany, this paper examines whether secondgeneration immigrants and girls are graded worse in math than comparable natives and boys, respectively. Once all grading-relevant characteristics, namely math skills and oral participation, are accounted for,...

This paper develops an analytically solvable new economic geography model of the 'footloose entrepreneur' class in which not only skilled labor is mobile, but also unskilled labor. Allowing unskilled labor to move freely between different regions increases the agglomeration incentive of skilled...

This article analyzes profit taxation according to the arm's length principle in a new model where heterogeneous firms sort into foreign outsourcing. We show that multinational firms are able to shift profits abroad even if they fully comply with the tax code. This is because, in equilibrium,...

The paper analyzes the impact of skill-biased migration policies under the economics of agglomeration. It therefore develops an agglomeration model with two types of mobile worker who are heterogeneous and differ both within and between skill groups with respect to their migration propensity. On...

We investigate the causal effect of age at migration on subsequent educational attainment in the destination country. To identify the causal effect we compare the educational attainment of siblings at age 21, exploiting the fact that they typically migrate at different ages within a given...

Does a high regional concentration of immigrants of the same ethnicity affect immigrant children's acquisition of host-country language skills and educational attainment? We exploit the exogenous placement of guest workers from five ethnicities across German regions during the 1960s and 1970s in...

Naturalization may be a relevant policy instrument affecting immigrant integration in hostcountry labor markets. We study the effect of naturalization on labor market outcomes of immigrants in Germany. We apply recent survey data and exploit a reform of naturalization rules in an instrumental...

While economic theory suggests substitutability between labor and capital, little evidence exists regarding the causal effect of labor supply on inventing labor-saving technologies. We analyze the impact of exogenous changes in regional labor supply on automation innovation by exploiting an...

The empirical literature has shown on numerous occasions that immigrants and their offspring fare worse economically than natives with comparable observable characteristics. This study addresses youth unemployment as an important determinant of youths' later labor market success by looking at...