This paper investigates the effect of co-worker characteristics on wages, measured by the average person effect of coworkers in a wage regression. The effect of interest is identified from within-firm changes in workforce composition, controlling for person effects, firm effects, and...

Estimates of labor supply elasticities can be sensitive to the source of identifying variation. This paper's model of production complementarities helps to interpret conflicting evidence. Complementarities attenuate working time adjustments to idiosyncratic, or individual-specific, variation in...

In this paper we try to provide an overview of a series of simple descriptive facts on recent trends in economic inequality in Germany. We believe that it is important to be precise in the way in which we define the inequality measure and the sample we use, to avoid generating vague messages...

We study the effects of immigration on native welfare in a general equilibrium model featuring two skill types, search frictions, wage bargaining, and a redistributive welfare state. Our quantitative analysis suggests that, in all 20 countries studied, immigration attenuates the effects of...

We study the effects of immigration on native welfare in a general equilibrium model featuring two skill types, search frictions, wage bargaining, and a redistributive welfare state. Our quantitative analysis suggests that, in all 20 countries studied, immigration attenuates the effects of...

This paper investigates how the size of co-ethnic networks at the time of arrival affect the economic success of immigrants in Germany. Applying panel analysis with a large set of fixed effects and controls, we isolate the association between initial network size and long-run immigrant outcomes....