This paper analyzes whether immigrant families facing credit constraints adopt a family investment strategy wherein, upon arrival, an immigrant spouse invests in host country-specific human capital while the other partner works to finance the family's current consumption and the spouse's skills...

Summary This paper examines the purpose of remittances using individual data of migrants in Germany. Particular attention is paid to migrants’ savings and transfers to family members in the home country. Our findings indicate that migrants who intend to stay in Germany only temporarily have a...

This paper studies the importance of dynamic earnings modeling for the design of income contingent student loans (ICLs). ICLs have been shown to be theoretically optimal in terms of efficiency in the presence of risk aversion, adverse selection and moral hazard, and have attractive equity...

It is generally agreed that the funding base for German universities is inadequate and perhaps the time has come for serious consideration of the imposition of nontrivial tuition charges. This article compares conventional and income contingent loans (ICLs) for financing tuition fees at German...

In this paper, a decomposition method for Tobit-models is derived, which allows the differences in a censored outcome variable between two groups to be decomposed into a part that is explained by differences in observed characteristics and a part attributable to differences in the estimated...