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Economic Assimilation and Outmigration of Immigrants in West-Germany

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Author Info

  • Bellemare, C.

    (Tilburg University, Center for Economic Research)

Abstract

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.

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Bibliographic Info

Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2003-65.

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Date of creation: 2003
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Handle: RePEc:dgr:kubcen:200365

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Web page: http://center.uvt.nl

Related research

Keywords: immigration; migration; unemployment; economic theory; labour economics; assimilation;

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Cited by:
  1. Kirdar, Murat, 2008. "Labor Market Outcomes, Savings Accumulation, and Return Migration," MPRA Paper 7128, University Library of Munich, Germany.
  2. Sari Pekkala Kerr & William R. Kerr, 2011. "Economic Impacts of Immigration: A Survey," NBER Working Papers 16736, National Bureau of Economic Research, Inc.
  3. Kari Hämäläinen & Aki Kangasharju & Sari Pekkala & Matti Sarvimäki, 2005. "Employment Assimilation of Immigrants - Evidence from Finland," ERSA conference papers ersa05p75, European Regional Science Association.
  4. Kirdar, Murat, 2007. "Labor market outcomes, capital accumulation, and return migration: Evidence from immigrants in Germany," MPRA Paper 2028, University Library of Munich, Germany.
  5. Murat G. Kirdar, 2007. "Labor Market Outcomes, Capital Accumulation, and Return Migration: Evidence from Immigrants in Germany," ERC Working Papers 0703, ERC - Economic Research Center, Middle East Technical University, revised Jan 2007.

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