International Industrial- and Growth Policy
On the Interaction Between Migration, Capital Formation, and House Prices
We investigate the effects of interregional labor market integration on the dynamic interaction between migration and capital formation through changes in house prices. The nature of this interaction depends on initial conditions at the time of labor market integration. In an initially capital-poor economy, there may be a reversal of migration during the transition to the steady state, like observed in Eastern Europe after 1990. In a high-productivity country which attracts immigrants, house and land prices gradually increase despite the induced (residential) capital investments. Welfare effects are heterogeneous: whereas landless individuals lose from immigration due to increased housing costs, landowners may win.
Volker Grossmann (University of Fribourg; CESifo, Munich; Institute for the Study of Labor, Bonn), Andreas Schäfer (University of Leipzig), Thomas M. Steger (University of Leipzig; CESifo, Munich)
Are Sociocultural Factors Important for Studying a Science University Major?
This paper examines the role of the sociocultural background of students as measured by both religious denomination and political attitudes towards gender equality and science-related issues in their home environment for choosing a STEM field in university. Our empirical estimates are based on a structural Roy model which accounts for differences in costs (distance to the next technical university) and earnings across majors as well as for selection bias. Our findings suggest that male students from conservative and Catholic municipalities are more likely to study a STEM field, whereas the sociocultural background plays little role for the major choice of females. Reassuringly in view of previous studies, we confirm that female students are less motivated by earnings than men.
Volker Grossmann (University of Fribourg; CESifo, Munich; Institute for the Study of Labor, Bonn), Aderonke Osikominu (University of Zurich; University of Hohenheim; CESifo, Munich; Institute for the Study of Labor, Bonn), Marius Osterfeld (University of Fribourg)