I propose two new tests of Falk and Knell's (2004) prediction that individuals' reference income increases with ability. To overcome the difficulty that the reference incomeis not observed in existing large data sets, I extend Falk and Knell's model to establish a link between immigrants'...

In this study, we examine how economic performance during the child-specific primary school phase, during which teachers make recommendations regarding secondary school level, affects the educational level achieved ultimately by these children. Using data for Germany, we find that an economic...

Closely following recent innovations in the literature on the multidimensional measurement of poverty, this paper provides similar measures for the top of the distribution using a dual cutoff method to identify individuals, who can be considered as rich in a multidimensional setting. We use this...

Education is a well-known driver of (entrepreneurial) income. The measurement of its influence, however, suffers from endogeneity suspicion. For instance, ability and occupational choice are mentioned as driving both the level of (entrepreneurial) income and of education. Using instrumental...

We analyse the determinants of dropout from secondary and vocational education in Germany using data from the Socio-Economic Panel from 2000 to 2007. In addition to the role of classical variables like family background and school achievements, we examine the effect of noncognitive skills. Both,...

The major event of the 9/11 terror attacks is likely to have induced an increase in anti-immigrant and anti-foreigner sentiments, not only among US residents but also beyond US borders. Using longitudinal data from the German Socio-Economic Panel and exploiting exogenous variation in interview...

The reasons why the lower educated divorce more than the higher educated in many societies today are poorly understood. Distinct divorce risks by education could be caused by variation in pressures to the couple, commitment, or relationship skills. We concentrate on the latter explanation by...

Identity can be an important driving force for educational performance. Immigrants and their children face the challenge of identifying with their host country's culture. This paper examines whether young immigrants and their children who identify stronger with the German culture are more likely...

This study investigated the effects of divorce on educational gaps in mothers’ economic resources. The results shed new light on two opposing theoretical positions that have informed research on social inequality in the consequences of divorce. Recent extensions of the “diverging...

In this paper, we use SOEP data to explore whether parents' employment has an extra effect on the school achievement of their children, beyond the well-established effects of education, income and demography. First, we test whether the source of income or parents' unemployment determine...