We analyze the pattern of migrants' self-selection in unobservables when there is uncertainty about foreign wages. Negative selection becomes more likely, and a greater dispersion of wages at destination no longer suffices to predict that immigrants will outperform natives.

Destination countries are increasingly adopting selective immigration policies. These can effectively increase migrants' average education even if one allows for endogenous schooling decisions and education policies at origin. Still, more selective immigration policies can reduce social welfare...

Differences between black and white students in Britain are investigated. If black parents would invest in education as much as white parents do, the racial test score gap in mathematics and reading would be reduced by 7 and 9%.