specialized occupations. Compared to non-migrants, immigrants receive more than twice the return for using English. Returns depend … crucially on speaking German well, thus excluding many first generation migrants and are found to occur particularly in service … occupations that involve international factor flows. In such occupations it is likely that migrants can apply complementary skills …

Destination countries can adopt selective immigration policies to improve migrants' quality. Screening potential … migrants on the basis of observable characteristics also influences their self-selection on unobservables. We propose a model … that analyzes the effects of selective immigration policies on migrants' quality, measured by their wages at destination …