Corresponding Author

E-mail address: schueller.s@ifo.de

Ifo Institute, FBK‐IRVAPP and IZA. Ifo Institute, Leibniz Institute for Economic Research at the University of Munich, Poschingerstr.5, D‐81679 Munich (Germany). Tel. +49(89)9224‐1465 ‐ Fax. +49(89)9224‐1460. E‐mail address: schueller.s@ifo.de. The data used in this paper were made available by the Socio‐Economic Panel Study (SOEP) at the German Institute for Economic Research (DIW Berlin). Financial support from the German Research Foundation (DFG) for the project “Ethnic Diversity and Labor Market Success” in the Priority Program “Flexibility in Heterogeneous Labor Markets” is gratefully acknowledged. I thank the responsible editor and two anonymous referees for their help and guidance. This paper has further ben‐e ted from insightful comments by participants of the 2013 SOLE meetings, RES conference, and IZA AM2, the 2013 Potsdam PhD Workshop, the IZA European Summer School, the 2014 Spring Meeting of Young Economists, seminars at Rome Tor Vergata, IZA, RWI, and DIW/SOEP, and in particular from discussions with Erich Battistin, Costanza Biavaschi, Thomas Cornelissen, Giovanni Facchini, Martin Fischer, Andrew J. Oswald, Enrico Rettore, Ulf Rinne, Dan‐Olof Rooth and Klaus F. Zimmermann. All remaining errors are my own. Search for more papers by this author