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On a Variation in the Economic Performance of Migrants by their Home Country's Wage

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  • Stark, Oded

Abstract

Although the economic performance of migrants in the receiving country undoubtedly depends on qualifications, it is also affected by inclinations. Given the probability of return migration, a behavioural link is established between the incentive of migrants to save in their country of destination and the prevailing wage rate in their home country. It is shown that migrants coming from a low-wage country optimally save more than migrants from a high-wage country. Policy and research implications suggested by this savings behaviour are alluded to.

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File URL: http://mpra.ub.uni-muenchen.de/21682/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 21682.

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Date of creation: 2002
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Handle: RePEc:pra:mprapa:21682

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  1. Schaeffer, Peter V, 1995. "The Work Effort and the Consumption of Immigrants as a Function of Their Assimilation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 36(3), pages 625-42, August.
  2. Merkle, Lucie & Zimmermann, Klaus F., 1992. "Savings, remittances, and return migration," Economics Letters, Elsevier, Elsevier, vol. 38(1), pages 77-81, January.
  3. Christopher D. Carroll & Byung-Kun Rhee & Changyong Rhee, 1998. "Does Cultural Origin Affect Saving Behavior? Evidence from Immigrants," NBER Working Papers, National Bureau of Economic Research, Inc 6568, National Bureau of Economic Research, Inc.
  4. Galor, Oded & Stark, Oded, 1990. "Migrants' Savings, the Probability of Return Migration and Migrants' Performance," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(2), pages 463-67, May.
  5. Galor, Oded & Stark, Oded, 1991. "The Impact of Differences in the Levels of Technology on International Labor Migration," Journal of Population Economics, Springer, Springer, vol. 4(1), pages 1-12, March.
  6. Oded Stark & Christian Helmenstein & Yury Yegorov, 1997. "Migrants' Savings, Purchasing Power Parity, and the Optimal Duration of Migration," International Tax and Public Finance, Springer, Springer, vol. 4(3), pages 307-324, July.
  7. Galor, Oded & Stark, Oded, 1991. "The probability of return migration, migrants' work effort, and migrants' performance," Journal of Development Economics, Elsevier, Elsevier, vol. 35(2), pages 399-405, April.
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Cited by:
  1. Mouawiya Al-Awad & Adam Elhiraika, 2003. "Cultural Effects and Savings: Evidence from Immigrants to the United Arab Emirates," Journal of Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 39(5), pages 139-151.

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