Economic Assimilation and Outmigration of Immigrants in West-Germany
AbstractBy 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 InfoPaper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2003-65.
Date of creation: 2003
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immigration; migration; unemployment; economic theory; labour economics; assimilation;
Find related papers by JEL classification:
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
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