While available evidence suggests that the events of September 11th negatively influenced the relative earnings of employees with Arab background in the US, it is not clear that they had similar effects in other countries. Our study for Germany provides evidence that the events also affected the...

The 1/n problem potentially limits the effectiveness of profit sharing in motivating workers. While the economic literature suggests that reciprocity can mitigate this problem, it remains silent on the optimal degree of reciprocity. We present a representative model demonstrating that...

Using unique survey data from the German Socio-Economic Panel, this study examines the influence of reciprocal inclinations on workers' sorting into codetermined firms. Employees with strong negative reciprocal inclinations are more likely to work in firms with a works council while employees...

Using data from the German Socio-Economic Panel, this study examines the relationship between immigrant residential segregation and immigrants' satisfaction with the neighborhood. The estimates show that immigrants living in segregated areas are less satisfied with the neighborhood. This is...

Using survey data from the German Socio-Economic Panel, this study shows that immigrants living in segregated residential areas are more likely to report discrimination because of their ethnic background. This applies to both segregated areas where most neighbors are immigrants from the same...

This paper investigates the interaction between establishment-level codetermination and industry-level collective bargaining in Germany. Based on a simple bargaining model we derive our main hypothesis: In establishments covered by collective bargaining agreements works councils are more likely...

Using data on a sample of manufacturing establishments in Germany, we find that the use of self-managed teams is associated with increased intra-firm wage inequality between skilled and unskilled blue-collar workers. We also show that moderating factors play an important role. While teamwork...

Virtually all empirical firm-level studies on the demand for labor do not include labor cost in the econometric specification. This is due to the fact that business and innovation survey data usually lack information on labor cost. This paper shows how reliable skill-specific and firm-specific...

Multivariate Tobit models are estimated using German cross?sectional data to test whether strategic complementarities exist between expenditures in four different types of ICT?components. If two ICT?components are complements, they are correlated (provided that agents act rationally)....