This paper models some reductions in output that may follow the opening of electricity markets to competition. Specifically, we show that vertical separation of electricity generation, transmission and distribution could reduce welfare compared to the previous system of vertically integrated monopoly, if grid owners can act as monopolistic retailers or, alternatively, set access prices that maximize ...
There are few studies on occupational choices in Germany, and second-generation occupational choice and mobility has been investigated even less. Such research is important because occupations determine success in the labor market. In a country like Germany, occupations also reflect a general socio-economic standing. This paper looks at the patterns of employment in Germany, analyzes how individual ...
The labor market performance of Portuguese workers in Germany is analyzed in this article. While previous work has compared wages and characteristics of migrants to natives only, this study also matches the data set with an equivalent survey from the sending country. The findings show that Portuguese migrants as a whole are negatively selected, with the exception of blue-collar workers, the largest ...
The competitive choice of emission taxes by two governments is analysed in a model of monopolostic competition with capital mobility where pollution externalities are regional. Assuming that governments have no other policy instrument apart from emission taxes at their disposal, I show that governments choose inefficiently low (high) taxes if the importance of emissions in production is small (large) ...
There is no simple solution to the German unemployment dilemma. Neither too high wages, nor unionized central bargaining, nor the evidence of the effects of the welfare state deliver a simple explanation. The East German experience confirms this view. A solution needs to combine flexibility with economic growth. More flexible product markets could help to generate the higher demand for unskilled labour ...
The speed at which immigrants assimilate is the subject of debate. Human capital formation plays a major role in this discussion. We compare second generation immigrants' educational attainments to those of similarly aged natives. Evidence from German data suggests ethnicity matters: ethnic network size has a positive effect on educational attainment, and a clear pattern is exhibited between countries-of-origin ...
