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Labor market outcomes, savings accumulation, and return migration

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  • KIrdar, Murat G.

Abstract

In this paper, I examine the determinants of return migration from Germany for immigrants from four different source countries, and test the savings accumulation conjecture that is used to rationalize return migration decisions using both cross-country and time variation in purchasing power parity. The empirical results confirm the savings accumulation conjecture. Therefore, return migration can be seen as part of optimal life-cycle location choices in this context. I also examine how labor market outcomes influence return decisions. A key finding here is that unlike previous studies, which find a positive impact of unemployment on return migration, I find that the direction of the impact of unemployment changes by the spell length.

Suggested Citation

  • KIrdar, Murat G., 2009. "Labor market outcomes, savings accumulation, and return migration," Labour Economics, Elsevier, vol. 16(4), pages 418-428, August.
    • Handle: RePEc:eee:labeco:v:16:y:2009:i:4:p:418-428
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    More about this item

    Keywords

    International migration Savings accumulation Unemployment Duration analysis;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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