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Identification and Estimation of Economic Models of Outmigration Using Panel Attrition

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Author Info
Bellemare, Charles () (CentER, Tilburg University and IZA Bonn)

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Abstract

Because their departures are difficultly observed, little is known about the performance of immigrants who leave a region and move to another. This paper shows conditions under which the (conditional) outmigration probability, work probability and the expected earnings of outmigrants are nonparametrically identified using data on immigrant sample attrition. We present an econometric model which extracts the information on outmigration behavior from sample attrition and allows to incorporate unobserved heterogeneity in the choice process in a very natural way, a feature not previously possible. The method presented in the paper is general enough to estimate models of internal and external migration. We apply our framework to estimate a panel data model where immigrants can choose whether to stay or leave a country. The model is estimated using the German Socio-Economic Panel (GSOEP). Outmigrants are found to have significantly lower labor market earnings and work propensities than permanent migrants.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1065.

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Length: 34 pages
Date of creation: Mar 2004
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Handle: RePEc:iza:izadps:dp1065

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Related research
Keywords: outmigration; identification; panel data models;

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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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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.:
  1. Edin, Per-Anders & LaLonde, Robert J. & Åslund, Olof, 2000. "Emigration of Immigrants and Measures of Immigrant Assimilation: Evidence from Sweden," Working Paper Series 2000:13, Uppsala University, Department of Economics. [Downloadable!]
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  2. Arellano, Manuel & Honore, Bo, 2001. "Panel data models: some recent developments," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 53, pages 3229-3296 Elsevier. [Downloadable!] (restricted)
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  3. Guillermina Jasso & Mark Rosensweig & James P. Smith, 2003. "The Earnings of US immigrants," Labor and Demography 0312007, EconWPA. [Downloadable!]
  4. Borjas, George J & Bratsberg, Bernt, 1996. "Who Leaves? The Outmigration of the Foreign-Born," The Review of Economics and Statistics, MIT Press, vol. 78(1), pages 165-76, February. [Downloadable!] (restricted)
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  5. Dustmann, C, 1993. "Earnings Adjustment of Temporary Migrants," Journal of Population Economics, Springer, vol. 6(2), pages 153-68, May.
  6. T. Paul Schultz, 1998. "Immigrant quality and assimilation: A review of the US literature," Journal of Population Economics, Springer, vol. 11(2), pages 239-252. [Downloadable!] (restricted)
  7. Stark, Oded, 1995. " Return and Dynamics: The Path of Labor Migration When Workers Differ in Their Skills and Information Is Asymmetric," Scandinavian Journal of Economics, Blackwell Publishing, vol. 97(1), pages 55-71, March.
  8. Dustmann, Christian & Kirchkamp, Oliver, 2001. "The Optimal Migration Duration and Activity Choice after Re-migration," IZA Discussion Papers 266, Institute for the Study of Labor (IZA). [Downloadable!]
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  9. Kenneth Train, 2003. "Discrete Choice Methods with Simulation," Online economics textbooks, SUNY-Oswego, Department of Economics, number emetr2, March. [Downloadable!]
  10. Carrington, William J & Detragiache, Enrica & Vishwanath, Tara, 1996. "Migration with Endogenous Moving Costs," American Economic Review, American Economic Association, vol. 86(4), pages 909-30, September. [Downloadable!] (restricted)
  11. Jörn-Steffen Pischke & Johannes Velling, 1997. "Employment Effects Of Immigration To Germany: An Analysis Based On Local Labor Markets," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 594-604, November. [Downloadable!] (restricted)
  12. William A. V. Clark & Anita I. Drever, 2001. "Do Immigrants Improve Their Housing Quality When They Move?: Evidence from the German Socio-Economic Panel," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 70(1), pages 87-94.
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  1. Charles Bellemare, 2004. "A Life-Cycle Model of Outmigration and Economic Assimilation of Immigrants in Germany," Cahiers de recherche 0430, CIRPEE. [Downloadable!]
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