We exploit a natural experiment related to the German re-unification to address the question whether disutility from income comparisons affects attitudes towards foreigners. We find robust evidence that East Germans expose strong negative attitudes towards foreigners, particularly from low-wage...

We exploit the natural experiment of German division and reunification to address the question whether individuals who feel distress from social comparisons in terms of income reveal more negative attitudes towards foreigners. Our empirical approach rests upon individuals from the German...

In this paper we study the relationship between financial literacy and self-employment. We use established financial knowledge-based questions to measure financial literacy levels. The analysis shows a highly significant correlation between self-employment and financial literacy scores. To...

This paper presents the outline of a new approach to the theory of rural-to-urban migration in less developed countries. Implications of the approach for inequality in the distribution of income, fertility decisions, and the shadow wage rate are explored.