Graduates from higher education often enter the labour market with a considerable amount of work experience. Using German data, we address the question of whether early work experience pays off upon labour market entry. We compare the labour market benefits of different types of work experience. This comparison allows us to more generally test hypotheses about different explanations of why education pays off. Results indicate that tertiary graduates do not profit from work experience that is unrelated to the field of study or was a mandatory part of the study programme. Even though field-related and voluntary work experience helps graduates to realize a fast integration into the labour market, it is not linked to higher chances for entering a favourable class position or to higher wages in the long run. These results provide evidence for the signalling explanation of educational benefits in the labour market rather than the human capital explanation.

Respondent incentives are a popular instrument to achieve higher response rates in surveys. However, the use of incentives is still a controversial topic in the methodological literature with regard to the possible reduction or increase in response quality. We conducted an experiment in a large-scale German face-to-face study in which the treatment group was promised a modest monetary incentive. We used different indicators of response quality and compared the incentivized group with the control group. Our results indicate that in general there are no systematic differences between the incentivized and the control group concerning response quality. We found some hints that specific subgroups react differently to incentives in terms of response behavior. While response quality usually tends to be lower for older respondents, we found that in the incentivized group the response quality is higher for older respondents as compared to younger ones regarding the level of item nonresponse.