This paper analyses the effects of education signals for Ethnic Germans and Germans without a migration background (“Native Germans”). We base our analysis on a sorting model with productivity enhancing effects of education. We compare whether the signalling value differs between the...

We study the returns to apprenticeship and vocational training for three early labor market outcomes all measured at age 25 for East and West German youths: non-employment (i.e., unemployment or out of the labor force), permanent fulltime employment, and wages. We find strong positive effects of...