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Emigration and the Age Profile of Retirement Among Immigrants

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Author Info
Deborah A. Cobb-Clark ()
Steven Stillman () (Economics Program and Social Policy Evaluation, Analysis, and Research (SPEAR) Centre Research School of Social Sciences, Australian National University and Institute for the Study of Labor (IZA),Motu Economic and Public Policy Research Wellington, New Zealand)

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Abstract

This paper analyzes the relationship between immigrants’ retirement status and the prevalence of return migration from the host country to their country of origin. We develop a simple theoretical model to illustrate that under reasonable conditions the probability of return migration is maximized at retirement. Reduced-form models of retirement status which control for the rate of return migration are then estimated using unique data on emigration rates matched to individual-level data for Australia. We find that immigrants, particularly immigrant women, are more likely to be retired than are native-born men and women with the same demographic, human capital, and family characteristics. Moreover, within the immigrant population, there is a negative relationship between the propensity to be retired and the return migration rate of one’s fellow countrymen, particularly amongst men. This link is strongest for those individuals who are at (or near) retirement age and among those with the highest cost of return migration. These results suggest that the fiscal pressures associated with aging immigrant populations vary substantially across origin countries.

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Publisher Info
Paper provided by Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London in its series CReAM Discussion Paper Series with number 0815.

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Date of creation: Dec 2008
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Handle: RePEc:crm:wpaper:0815

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Related research
Keywords: retirement; immigrants; return migration; emigration; Australia;

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Find related papers by JEL classification:
J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies

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  1. Mathias Sinning, 2007. "Determinants of Savings and Remittances – Empirical Evidence from Immigrants to Germany," Ruhr Economic Papers 0023, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen. [Downloadable!]
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  2. Francine D. Blau & Lawrence M. Kahn & Kerry L. Papps, 2008. "Gender, Source Country Characteristics and Labor Market Assimilation Among Immigrants: 1980-2000," NBER Working Papers 14387, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. Baker, Michael & Benjamin, Dwayne, 1997. "The Role of the Family in Immigrants' Labor-Market Activity: An Evaluation of Alternative Explanations," American Economic Review, American Economic Association, vol. 87(4), pages 705-27, September. [Downloadable!] (restricted)
  4. Lumsdaine, Robin L. & Mitchell, Olivia S., 1999. "New developments in the economic analysis of retirement," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 49, pages 3261-3307 Elsevier. [Downloadable!] (restricted)
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  5. Cobb-Clark, Deborah & Crossley, Thomas F., 2004. "Revisiting the family investment hypothesis," Labour Economics, Elsevier, vol. 11(3), pages 373-393, June. [Downloadable!] (restricted)
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  6. Augustin de Coulon & François-Charles Wolff, 2006. "The Location of Immigrants at Retirement: Stay/Return or ‘Va-et-Vient’?," IZA Discussion Papers 2224, Institute for the Study of Labor (IZA). [Downloadable!]
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  8. George J. Borjas & Bernt Bratsberg, 1994. "Who Leaves? The Outmigration of the Foreign-Born," NBER Working Papers 4913, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  9. Hill, John K., 1987. "Immigrant decisions concerning duration of stay and migratory frequency," Journal of Development Economics, Elsevier, vol. 25(1), pages 221-234, February. [Downloadable!] (restricted)
  10. Dustmann, Christian, 1999. " Temporary Migration, Human Capital, and Language Fluency of Migrants," Scandinavian Journal of Economics, Blackwell Publishing, vol. 101(2), pages 297-314, June. [Downloadable!] (restricted)
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  11. Francine D. Blau & Lawrence M. Kahn & Joan Y. Moriarty & Andre Portela Souza, 2002. "The Role of the Family in Immigrants' Labor-Market Activity: Evidence from the United States," NBER Working Papers 9051, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  12. Oded Stark & Christian Helmenstein & Yury Yegorov, 1997. "Migrants' Savings, Purchasing Power Parity, and the Optimal Duration of Migration," International Tax and Public Finance, Springer, vol. 4(3), pages 307-324, July. [Downloadable!] (restricted)
  13. Dustmann, Christian, 1997. "Return migration, uncertainty and precautionary savings," Journal of Development Economics, Elsevier, vol. 52(2), pages 295-316, April. [Downloadable!] (restricted)
  14. Robert F. Schoeni, 1998. "Labor market assimilation of immigrant women," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 51(3), pages 483-504, April.
  15. Stark, Oded & Helmenstein, Christian & Yegorov, Yuri, 1997. "Migrants' Savings, Purchasing Power Parity, and the Optimal Duration of Migration," Economics Series 44, Institute for Advanced Studies. [Downloadable!]
  16. Christian Dustmann, 2003. "Children and return migration," Journal of Population Economics, Springer, vol. 16(4), pages 815-830, November. [Downloadable!] (restricted)
  17. Moulton, Brent R, 1990. "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 334-38, May. [Downloadable!] (restricted)
  18. Merkle, Lucie & Zimmermann, Klaus F., 1992. "Savings, remittances, and return migration," Economics Letters, Elsevier, vol. 38(1), pages 77-81, January. [Downloadable!] (restricted)
  19. Dustmann, Christian, 1997. "Differences in the labor market behavior between temporary and permanent migrant women," Labour Economics, Elsevier, vol. 4(1), pages 29-46, March. [Downloadable!] (restricted)
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  20. Galor, Oded & Stark, Oded, 1991. "The probability of return migration, migrants' work effort, and migrants' performance," Journal of Development Economics, Elsevier, vol. 35(2), pages 399-405, April. [Downloadable!] (restricted)
  21. Osili, Una Okonkwo, 2007. "Remittances and savings from international migration: Theory and evidence using a matched sample," Journal of Development Economics, Elsevier, vol. 83(2), pages 446-465, July. [Downloadable!] (restricted)
  22. Christian Dustmann, 2007. "Return Migration, Investment in Children, and Intergenerational Mobility: Comparing Sons of Foreign and Native Born Fathers," IZA Discussion Papers 3080, Institute for the Study of Labor (IZA). [Downloadable!]
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  23. Christian Dustmann & Yoram Weiss, 2007. "Return Migration: Theory and Empirical Evidence from the UK," British Journal of Industrial Relations, Blackwell Publishers Ltd/London School of Economics, vol. 45(2), pages 236-256, 06. [Downloadable!] (restricted)
  24. Dustmann, Christian & Kirchkamp, Oliver, 2002. "The optimal migration duration and activity choice after re-migration," Journal of Development Economics, Elsevier, vol. 67(2), pages 351-372, April. [Downloadable!] (restricted)
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  25. Galor, Oded & Stark, Oded, 1990. "Migrants' Savings, the Probability of Return Migration and Migrants' Performance," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(2), pages 463-67, May. [Downloadable!] (restricted)
  26. Dustmann, Christian, 2003. "Return migration, wage differentials, and the optimal migration duration," European Economic Review, Elsevier, vol. 47(2), pages 353-369, April. [Downloadable!] (restricted)
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