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Temporary Migration, Human Capital, and Language Fluency of Migrants

This paper investigates human capital investment of immigrants whose duration in the host country is limited, either by contract or by their own choice. The first part of the paper develops a model which distinguishes between temporary migrations where the return time is exogenous or optimally chosen. The analysis has a number of interesting implications for empirical work, some of which are explored ...

Children and return migration

Return Migration, Wage Differentials, and the Optimal Migration Duration

In simple static models, migration increases with the wage differential between host- and home-country. In a dynamic framework, and if migrations are temporary, the size of the migrant population in the host country depends also on the migration duration. This paper analyses optimal migration durations in a model which rationalises the decision of the migrant to return to his home country, despite ...

Parental background, secondary school track choice, and wages

The way parents take influence on the education of their children is a crucial aspect of intergenerational mobility. Unlike in the UK or in the US, in Germany an important decision about which educational track to follow is made at a relatively early stage: after primary school, at the age of ten. In this paper, we use micro data to analyse the association between parents’ education and profession, ...

Return Migration, Investment in Children, and Intergenerational Mobility: Comparing Sons of Foreign- and Native-Born Fathers

This paper studies parental investment in education and intergenerational earnings mobility for father-son pairs with native- and foreign-born fathers. We illustrate within a simple model that for immigrants, investment in their children is related to their return migration probability. In our empirical analysis, we include a measure for return probabilities, based on repeated information about migrants’ ...

Housing Expenditures and Income Inequality

In this paper, we show that, in terms of real disposable income, changes in housing expenditures dramatically exacerbate the trend of income inequality that has risen sharply in Germany since the mid-1990s. More specifically, whereas the 50/10 ratio of net household income increases by 22 percentage points (pp) between 1993 and 2013, it increases by 62 pp for income net of housing expenditures. At ...

Refuting the cliché of the distrustful manager

Although trust is fundamental to social and organizational functioning, the media often portray managers as distrusting, suggesting that distrust of others is a typical personality variable of successful leaders. This study puts the cliché of the distrustful manager to the test. Both self-report data (N = 32,926) and behavioral data (N = 924) from the German Socio-Economic Panel refute this cliché. ...

Being Unengaged at Work but Still Dedicating Time and Energy: A Longitudinal Study

Overcommitted individuals cannot withdraw from work obligations. We examine whether work goal engagement attenuates the negative effects of overcommitment on work and health outcomes. For overcommitted professionals it should matter whether they dedicate time and energy to work goals they feel bound to or to goals they do not feel attached to (unengaged overcommitment). In a longitudinal study of 752 ...

Family background variables as instruments for education in income regressions: A Bayesian analysis

The validity of family background variables instrumenting education in income regressions has been much criticized. In this paper, we use data from the 2004 German Socio-Economic Panel and Bayesian analysis to analyze to what degree violations of the strict validity assumption affect the estimation results. We show that, in case of moderate direct effects of the instrument on the dependent variable, ...

Reproducing Occupational Inequality: Marriage, Parenthood and the Gender Divide in Occupations