Stichnoth, Holger - Zentrum für Europäische Wirtschaftsforschung (ZEW) - 2009
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 income is not observed in existing large data sets, I extend Falk and Knell's model to establish a link between immigrants'...