By analyzing earnings of observed immigrants workers, the literature on the economic assimilation of immigrants has generally overlooked two potentially important selectivity issues. First, earnings of immigrant workers may di.er substantially from those of non-workers. Second, earnings of immigrants who do not return to their native country may differ from earnings of outmigrants. Economic theory has contradictory predictions on the signs of these potential selection biases. This paper uses data drawn from 8 waves of the German Socio-Economic Panel and estimates a three-equation model of income, work and outmigration decisions taking into account time-invariant unobserved heterogeneity across individuals. We /nd strong evidence in favor of negative outmigration selection in both the earnings and work equations. Simulation results show that the magnitude of the outmigration bias is important.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number
65.
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)
Did you know? You can include your works in the database easily by uploading them on the Munich Personal RePEc Archive (MPRA) if you do not have access to an institutional RePEc archive.