Various studies have interpreted a positive correlation between income risk and wealth as evidence for large precautionary savings. However, the high estimates emerged from pooling non-entrepreneurs and entrepreneurs without controlling for heterogeneity. This paper provides evidence for Germany...

We reassess the empirical effects of income and employment on self-reported well-being. Our analysis makes use of a two-step estimation procedure that allows applying instrumental variable regressions with ordinal observable data. As suggested by the theory of incomplete markets, we...

This paper utilizes a unique micro data set on consumer durables to study the effect of consumption tax reforms on the time path of consumption. The dataset reports the monthly sales of individual products and their consumer prices in 22 European countries, which enacted numerous consumption tax...

Optimal integration policies should take the language skills of arriving migrants into account. However, little is known about the determinants of these skills, because most survey-based studies cannot distinguish between language learning before and after migration. We present a new dataset...

Using a panel of naturalizations in U.S. states from 1986 to 2012, we empirically analyze the impact of elections on immigration policy. Our results indicate that immigration policy is (partly) driven by national elections: there are more naturalizations in presidential election years and during...

Immigration is a major challenge and opportunity for rich Western countries. Integration of immigrants is a two-way process, the success of which depends both on immigrants and on natives. We provide new evidence on the determinants of individual attitudes towards immigration, using data from...

Using novel German district-level data from 1999-2011, this paper analyses whether the presence of immigrants in a particular location helps to attract inward FDI from the immigrants' country of origin. Results show that a one standard-deviation increase in the immigrant share is associated with...

This paper uses Danish full population register data from 1995 to 2001 to analyze self-selection of migrants from Denmark. We find that Danish emigrants are more educated and have higher pre-emigration earnings than non-migrants. The earnings of emigrants are not higher only on average, but the...

We investigate international migration choices of high-skilled individuals and measure migrant selection using predicted earnings. High-skilled migrants select to destinations as predicted by Borjas' (1987) model of migration choices. Migrants to less equal countries are positively selected,...

We estimate a gravity model for bilateral FDI out-stocks from panel data for OECD reporting countries with bilateral and year fixed effects. With this demanding test, we find a robust positive effect of bilateral immigrants on bilateral FDI - provided that residents of the two countries have few...