This paper analyzes the reservation wages of first and second generation migrants. Based on recently collected and rich survey data of a representative inflow sample into unemployment in Germany, we empirically test the hypothesis that reservation wages increase from first to second generation...

EU leaders are well aware of the relevance of migration in the European policy agenda. Thirty-two pages out of forty-eight of the Presidency Conclusions at the November 2004 European Council were devoted to migration policies. Economic theory suggests that there is a strong case for policy...