Advanced Search
MyIDEAS: Login to save this paper or follow this series

Selective Outmigration and the Estimation of Immigrants’ Earnings Profiles

Contents:

Author Info

  • Christian Dustmann

    ()
    (University College London)

  • Joseph-Simon Görlach

    ()
    (University College London)

Abstract

This chapter begins by documenting that temporary migrations are not only very common, but that outmigration of immigrants is selective both in terms of migrants’ individual characteristics and their economic outcomes. We then examine the problems that arise when estimating immigrants’ earnings profiles when outmigration is selective, and discuss the identifying assumptions needed to answer three different questions on immigrants’ earnings careers. We show how better data can help to relax these assumptions, suggest appropriate estimators, and provide an illustration using simulated data. We finally provide an overview of existing papers that use different types of data to address selective outmigration when estimating immigrants’ earnings profiles.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. 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.
File URL: http://www.norface-migration.org/publ_uploads/NDP_02_14.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Norface Research Programme on Migration, Department of Economics, University College London in its series Norface Discussion Paper Series with number 2014002.

as in new window
Length:
Date of creation: Jan 2014
Date of revision:
Handle: RePEc:nor:wpaper:2014002

Contact details of provider:
Postal: Drayton House, 30 Gordon Street, London WC1H 0AX
Phone: +44 (0)20 7679 5888
Fax: +44 (0)20 7916 2775
Web page: http://www.cream-migration.org/
More information through EDIRC

Related research

Keywords: migrant selection; outmigration; return migration; earnings profiles;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

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.:
as in new window
  1. Bijwaard, G.E., 2009. "Labour Market Status and Migration Dynamics," Econometric Institute Research Papers EI 2009-25, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
  2. Melenberg, Bertrand & van Soest, Arthur, 1996. "Parametric and Semi-parametric Modelling of Vacation Expenditures," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(1), pages 59-76, Jan.-Feb..
  3. Nekby, Lena, 2004. "The Emigration of Immigrants, Return vs. Onward Migration: Evidence from Sweden," Research Papers in Economics 2004:7, Stockholm University, Department of Economics.
  4. Christian Dustmann & Albrecht Glitz, 2011. "Migration and Education," Norface Discussion Paper Series 2011011, Norface Research Programme on Migration, Department of Economics, University College London.
  5. David C. Maré & Steven Stillman & Melanie Morten, 2007. "Settlement Patterns and the Geographic Mobility of Recent Migrants to New Zealand," Working Papers 07_11, Motu Economic and Public Policy Research.
  6. Picot, Garnett & Piraino, Patrizio, 2010. "Immigrant Earnings Growth: Selection Bias or Real Progress?," CLSSRN working papers clsrn_admin-2010-35, Vancouver School of Economics, revised 28 Dec 2010.
  7. Barth, Erling & Bratsberg, Bernt & Raaum, Oddbjørn, 2012. "Immigrant wage profiles within and between establishments," Labour Economics, Elsevier, vol. 19(4), pages 541-556.
  8. David Lindstrom, 1996. "Economic opportunity in mexico and return migration from the United States," Demography, Springer, vol. 33(3), pages 357-374, August.
  9. Dustmann, Christian & Glitz, Albrecht & Vogel, Thorsten, 2010. "Employment, wages, and the economic cycle: Differences between immigrants and natives," European Economic Review, Elsevier, vol. 54(1), pages 1-17, January.
  10. Fertig, Michael & Schurer, Stefanie, 2007. "Labour Market Outcomes of Immigrants in Germany: The Importance of Heterogeneity and Attrition Bias," IZA Discussion Papers 2915, Institute for the Study of Labor (IZA).
  11. Kirdar, Murat, 2008. "Labor Market Outcomes, Savings Accumulation, and Return Migration," MPRA Paper 7128, University Library of Munich, Germany.
  12. Bellemare, Charles, 2007. "A life-cycle model of outmigration and economic assimilation of immigrants in Germany," European Economic Review, Elsevier, vol. 51(3), pages 553-576, April.
  13. Cobb-Clark, Deborah A. & Stillman, Steven, 2008. "Emigration and the Age Profile of Retirement among Immigrants," IZA Discussion Papers 3874, Institute for the Study of Labor (IZA).
  14. Patricia Reagan & Randall Olsen, 2000. "You can go home again: Evidence from longitudinal data," Demography, Springer, vol. 37(3), pages 339-350, August.
  15. Abdurrahman Aydemir & Chris Robinson, 2006. "Global Labour Markets, Return and Onward Migration," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers 20061, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
  16. Deborah Cobb-Clark & Barbara Hanel & Duncan McVicar, 2012. "Immigrant Wage and Employment Assimilation: A Comparison of Methods," Melbourne Institute Working Paper Series wp2012n28, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  17. Borjas, George J, 1985. "Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 3(4), pages 463-89, October.
  18. Bijwaard, Govert & Wahba, Jackline, 2013. "Do High-Income or Low-Income Immigrants Leave Faster?," IZA Discussion Papers 7732, Institute for the Study of Labor (IZA).
  19. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  20. Darren Lubotsky, 2001. "The Effect of Changes in the U.S. Wage Structure on Recent Immigrants' Earnings," Labor and Demography 0110003, EconWPA.
  21. Bandiera, Oriana & Rasul, Imran & Viarengo, Martina, 2013. "The Making of Modern America: Migratory Flows in the Age of Mass Migration," Journal of Development Economics, Elsevier, vol. 102(C), pages 23-47.
  22. Klein, R.W. & Spady, R.H., 1991. "An Efficient Semiparametric Estimator for Binary Response Models," Papers 70, Bell Communications - Economic Research Group.
  23. Nicola D. Coniglio & Giuseppe De Arcangelis & Laura Serlenga, 2009. "Intentions to Return of Clandestine Migrants: The Perverse Effect of Illegality on Skills," Review of Development Economics, Wiley Blackwell, vol. 13(4), pages 641-657, November.
  24. Kaushal, Neeraj & Shang, Ce, 2013. "Earnings Growth of Mexican Immigrants: New versus Traditional Destinations," IZA Discussion Papers 7427, Institute for the Study of Labor (IZA).
  25. Bijwaard, Govert & Schluter, Christian & Wahba, Jackline, 2011. "The Impact of Labour Market Dynamics on the Return-Migration of Immigrants," IZA Discussion Papers 5722, Institute for the Study of Labor (IZA).
  26. Ran Abramitzky & Leah Platt Boustan & Katherine Eriksson, 2012. "Europe's Tired, Poor, Huddled Masses: Self-Selection and Economic Outcomes in the Age of Mass Migration," American Economic Review, American Economic Association, vol. 102(5), pages 1832-56, August.
  27. Riccardo Faini & Steiner Strom & Alessandra Venturini & Claudia Villosio, 2009. "Are Foreign Migrants more Assimilated than Native Ones?," LABORatorio R. Revelli Working Papers Series 96, LABORatorio R. Revelli, Centre for Employment Studies.
  28. Belinda I. Reyes & Laura Mameesh, 2002. "Why Does Immigrant Trip Duration Vary Across U.S. Destinations?," Social Science Quarterly, Southwestern Social Science Association, vol. 83(2), pages 580-593.
  29. Kalena E. Cortes, 2004. "Are Refugees Different from Economic Immigrants? Some Empirical Evidence on the Heterogeneity of Immigrant Groups in the United States," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 465-480, May.
  30. 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.
  31. Ekaterini Kyriazidou, 1997. "Estimation of a Panel Data Sample Selection Model," Econometrica, Econometric Society, vol. 65(6), pages 1335-1364, November.
  32. Augustin De Coulon & Matloob Piracha, 2003. "Self-selection and the performance of return migrants: the source country perspective," LSE Research Online Documents on Economics 20040, London School of Economics and Political Science, LSE Library.
  33. Amelie Constant & Douglas S. Massey, 2003. "Self-selection, earnings, and out-migration: A longitudinal study of immigrants to Germany," Journal of Population Economics, Springer, vol. 16(4), pages 631-653, November.
  34. Mario Izquierdo & Aitor Lacuesta & Raquel Vegas, 2009. "Assimilation of immigrants in Spain: A longitudinal analysis," Banco de Espa�a Working Papers 0904, Banco de Espa�a.
  35. Christian Dustmann & Yoram Weiss, 2007. "Return Migration: Theory and Empirical Evidence from the UK," British Journal of Industrial Relations, London School of Economics, vol. 45(2), pages 236-256, 06.
  36. Long, James E, 1980. "The Effect of Americanization on Earnings: Some Evidence for Women," Journal of Political Economy, University of Chicago Press, vol. 88(3), pages 620-29, June.
  37. Whitney Newey, 1999. "Two Step Series Estimation of Sample Selection Models," Working papers 99-04, Massachusetts Institute of Technology (MIT), Department of Economics.
  38. Zakharenko, Roman, 2008. "Return Migration: an Empirical Investigation," MPRA Paper 13755, University Library of Munich, Germany, revised Jan 2009.
  39. Michael Beenstock & Barry Chiswick & Ari Paltiel, 2010. "Testing the immigrant assimilation hypothesis with longitudinal data," Review of Economics of the Household, Springer, vol. 8(1), pages 7-27, March.
  40. J. Bhagwati & R. Brecher, 1978. "National Welfare in an Open Economy in the Presence of Foreign Owned Factors of Production," Working papers 224, Massachusetts Institute of Technology (MIT), Department of Economics.
  41. Sebastian Gundel & Heiko Peters, 2008. "What determines the duration of stay of immigrants in Germany?: Evidence from a longitudinal duration analysis," International Journal of Social Economics, Emerald Group Publishing, vol. 35(11), pages 769-782, October.
  42. Monika Sander, 2007. "Return Migration and the "Healthy Immigrant Effect"," SOEPpapers on Multidisciplinary Panel Data Research 60, DIW Berlin, The German Socio-Economic Panel (SOEP).
  43. Darren Lubotsky, 2007. "Chutes or Ladders? A Longitudinal Analysis of Immigrant Earnings," Journal of Political Economy, University of Chicago Press, vol. 115(5), pages 820-867, October.
  44. Skuterud, Mikal & Su, Mingcui, 2009. "Immigrant Wage Assimilation and the Return to Foreign and Host-Country Sources of Human Capital," CLSSRN working papers clsrn_admin-2009-38, Vancouver School of Economics, revised 26 Jun 2009.
  45. Amelie Constant & Klaus Zimmermann, 2011. "Circular and Repeat Migration: Counts of Exits and Years Away from the Host Country," Population Research and Policy Review, Springer, vol. 30(4), pages 495-515, August.
  46. Frank Kirwan & Frank Harrigan, 1986. "Swedish-finnish return migration, extent, timing, and information flows," Demography, Springer, vol. 23(3), pages 313-327, August.
  47. Biavaschi, Costanza, 2012. "Recovering the Counterfactual Wage Distribution with Selective Return Migration," IZA Discussion Papers 6795, Institute for the Study of Labor (IZA).
  48. Jennifer Hook & Weiwei Zhang & Frank D. Bean & Jeffrey S. Passel, 2006. "Foreign-born emigration: A new approach and estimates based on matched CPS files," Demography, Springer, vol. 43(2), pages 361-382, May.
  49. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October.
  50. Rooth, Dan-Olof & Saarela, Jan, 2007. "Selection in migration and return migration: Evidence from micro data," Economics Letters, Elsevier, vol. 94(1), pages 90-95, January.
  51. Carliner, Geoffrey, 1980. "Wages, Earnings and Hours of First, Second, and Third Generation American Males," Economic Inquiry, Western Economic Association International, vol. 18(1), pages 87-102, January.
  52. Dustmann, C, 1993. "Earnings Adjustment of Temporary Migrants," Journal of Population Economics, Springer, vol. 6(2), pages 153-68, May.
  53. Dustmann, Christian, 2001. "Return Migration, Wage Differentials, and the Optimal Migration Duration," IZA Discussion Papers 264, Institute for the Study of Labor (IZA).
  54. Wei-Yin Hu, 2000. "Immigrant Earnings Assimilation: Estimates from Longitudinal Data," American Economic Review, American Economic Association, vol. 90(2), pages 368-372, May.
  55. Ran Abramitzky & Leah Platt Boustan & Katherine Eriksson, 2012. "A Nation of Immigrants: Assimilation and Economic Outcomes in the Age of Mass Migration," NBER Working Papers 18011, National Bureau of Economic Research, Inc.
  56. Christian Dustmann & Mar�a Engracia Rochina-Barrachina, 2007. "Selection correction in panel data models: An application to the estimation of females' wage equations," Econometrics Journal, Royal Economic Society, vol. 10(2), pages 263-293, 07.
  57. Neeraj Kaushal, 2011. "Earning Trajectories of Highly Educated Immigrants: Does Place of Education Matter?," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 64(2), pages 323-340, January.
  58. Matti Sarvimäki, 2011. "Assimilation to a Welfare State: Labor Market Performance and Use of Social Benefits by Immigrants to Finland," Scandinavian Journal of Economics, Wiley Blackwell, vol. 113(3), pages 665-688, 09.
  59. Chiswick, Barry R, 1986. "Is the New Immigration Less Skilled Than the Old?," Journal of Labor Economics, University of Chicago Press, vol. 4(2), pages 168-92, April.
  60. Govert Bijwaard, 2010. "Immigrant migration dynamics model for The Netherlands," Journal of Population Economics, Springer, vol. 23(4), pages 1213-1247, September.
  61. Guillermina Jasso & Mark Rosenzweig, 1982. "Estimating the emigration rates of legal immigrants using administrative and survey data: The 1971 cohort of immigrants to the United States," Demography, Springer, vol. 19(3), pages 279-290, August.
  62. Alessandra Venturini & Claudia Villosio, 2008. "Labour-market assimilation of foreign workers in Italy," Oxford Review of Economic Policy, Oxford University Press, vol. 24(3), pages 518-542, Autumn.
  63. Erling Barth & Bernt Bratsberg & Oddbj¯rn Raaum, 2004. "Identifying Earnings Assimilation of Immigrants under Changing Macroeconomic Conditions," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(1), pages 1-22, 03.
  64. Borjas, George J, 1989. "Immigrant and Emigrant Earnings: A Longitudinal Study," Economic Inquiry, Western Economic Association International, vol. 27(1), pages 21-37, January.
  65. Seik Kim, . "Economic Assimilation of Foreign-Born Workers in the United States: An Overlapping Rotating Panel Analysis," Working Papers UWEC-2008-19, University of Washington, Department of Economics.
  66. Wooldridge, Jeffrey M., 1995. "Selection corrections for panel data models under conditional mean independence assumptions," Journal of Econometrics, Elsevier, vol. 68(1), pages 115-132, July.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:nor:wpaper:2014002. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Norface Migration Administrator) or (Thomas Cornelissen).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.