Using information on family background, we estimate returns to education, allowing for the heterogeneity of returns. In order to control for the unobserved heterogeneity shared by family members, we construct a siblings sample and employ family fixed-effects and family correlated random-effects...

We estimate peer effects for fourth graders in six European countries. The identification relies on variation across classes within schools. We argue that classes within primary schools are formed roughly randomly with respect to family background. Similar to previous studies, we find sizeable...

Self-productivity is a crucial feature in the process of skill formation. It means that skills and health acquired at one stage in the life cycle enhance skills and health formation at later stages. This paper presents an empirical investigation of self-productivity in early childhood in...

Self-productivity is a crucial feature in the process of skill formation. It means that skills and health acquired at one stage in the life cycle enhance skills and health formation at later stages. This paper presents an empirical investigation of self-productivity in early childhood in...

Student performance of Germans and immigrants differed greatly in the 2000 PISA study. This paper analyses why the two groups of students performed so differently by estimating educational production functions, using an extension study with imputed data. The difference in the test scores is...

This paper reviews the current state of knowledge on the link between education and wage inequality in Germany. The wage inequality is characterized by its stability, although a more detailed analysis reveals structural differences, especially between East and West Germany. Both the between and...