Central banks need to be concerned about wages since they are a major driver of inflation. Rising wages are needed to signal directions for market adjustments to ensure growth. Wage growth is driven by relative scarcity, labor productivity and expectations about inflation and future growth....

A scarce literature deals with the consumption implications of cultural assimilation and integration, ethnic clustering and diasporas, the marginal propensity to consume, home production and allocation of time, ethnic consumption, migration, and trade, as well as native consumption responses....

Estimating the effect of ethnic capital on human capital investment decisions is complicated by the endogeneity of immigrants' location choice, unobserved local correlates and the reflection problem. We exploit the institutional setting of a rare immigrant settlement policy in Germany, that...