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Labor Market Outcomes, Savings Accumulation, and Return Migration

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  • Kirdar, Murat

Abstract

In this paper, I test the savings accumulation conjecture that is used to rationalize return migration decisions in the context of immigrants in Germany. Using cross-country and time variation in purchasing power parity, I distinguish between the two competing capital accumulation conjectures (human capital vs. savings accumulation) and uncover evidence for the savings accumulation conjecture. In addition, I examine how labor market outcomes influence return decisions. A key finding here is that unlike previous studies which find a positive impact of unemployment on return migration, I find that the direction of the impact of unemployment changes by the spell length.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 7128.

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Date of creation: Feb 2008
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Handle: RePEc:pra:mprapa:7128

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Keywords: International Migration; Capital Accumulation; Unemployment; Duration Analysis;

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  1. A. Colin Cameron & Jonah B. Gelbach & Douglas L. Miller, 2007. "Bootstrap-Based Improvements for Inference with Clustered Errors," NBER Technical Working Papers 0344, National Bureau of Economic Research, Inc.
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  3. Borjas, George J, 1989. "Immigrant and Emigrant Earnings: A Longitudinal Study," Economic Inquiry, Western Economic Association International, Western Economic Association International, vol. 27(1), pages 21-37, January.
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  7. Djajic, Slobodan, 1989. "Migrants in a guest-worker system : A utility maximizing approach," Journal of Development Economics, Elsevier, Elsevier, vol. 31(2), pages 327-339, October.
  8. Dustmann, Christian, 2001. "Return Migration, Wage Differentials, and the Optimal Migration Duration," IZA Discussion Papers 264, Institute for the Study of Labor (IZA).
  9. Dean Yang, 2006. "Why Do Migrants Return to Poor Countries? Evidence From Philippine Migrants%u2019 Responses to Exchange Rate Shocks," NBER Working Papers 12396, National Bureau of Economic Research, Inc.
  10. 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, University of Western Ontario, CIBC Centre for Human Capital and Productivity 20061, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
  11. 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.
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  14. Constant, Amelie F. & Massey, Douglas S., 2002. "Self-Selection, Earnings, and Out-Migration: A Longitudinal Study of Immigrants to Germany," IZA Discussion Papers 672, Institute for the Study of Labor (IZA).
  15. 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.
  16. 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, Springer, vol. 19(3), pages 279-290, August.
  17. Bellemare, C., 2003. "Economic Assimilation and Outmigration of Immigrants in West-Germany," Discussion Paper, Tilburg University, Center for Economic Research 2003-65, Tilburg University, Center for Economic Research.
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  20. Dean Yang, 2006. "Why Do Migrants Return to Poor Countries? Evidence from Philippine Migrants' Responses to Exchange Rate Shocks," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 715-735, November.
  21. Dustmann, Christian, 1997. "Return migration, uncertainty and precautionary savings," Journal of Development Economics, Elsevier, Elsevier, vol. 52(2), pages 295-316, April.
  22. Kumcu, M. Ercan, 1989. "The savings behavior of migrant workers : Turkish workers in W. Germany," Journal of Development Economics, Elsevier, Elsevier, vol. 30(2), pages 273-286, April.
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Cited by:
  1. Hulya Ulku, 2010. "Remitting Behaviour of Turkish Migrants: Evidence from Household Data in Germany," Brooks World Poverty Institute Working Paper Series, BWPI, The University of Manchester 11510, BWPI, The University of Manchester.
  2. Kirdar, Murat G., 2008. "Estimating the impact of immigrants on the host country social security system when return migration is an endogenous choice," MPRA Paper 7803, University Library of Munich, Germany.
  3. Strom, Steinar & Venturini, Alessandra & Villosio, Claudia, 2013. "Wage Assimilation: Migrants versus Natives and Foreign Migrants versus Internal Migrants," Department of Economics and Statistics Cognetti de Martiis. Working Papers, University of Turin 201341, University of Turin.
  4. Christian Dustmann, 2014. "Selective Outmigration and the Estimation of Immigrants Earnings Profiles," CReAM Discussion Paper Series 1402, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  5. Murat Kirdar, 2010. "Source Country Characteristics and Immigrants’ Migration Duration and Saving Decisions," Koç University-TUSIAD Economic Research Forum Working Papers, Koc University-TUSIAD Economic Research Forum 1010, Koc University-TUSIAD Economic Research Forum.
  6. Govert E. Bijwaard & Christian Schluter & Jackline Wahba, 2014. "The Impact of Labor Market Dynamics on the Return Migration of Immigrants," The Review of Economics and Statistics, MIT Press, vol. 96(3), pages 483-494, July.
  7. Govert E. Bijwaard & Qi Wang, . "Return Migration of Foreign Students," CReAM Discussion Paper Series 1427, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  8. Govert E. Bijwaard & Christian Schluter & Jackline Wahba, 2012. "The Impact of Labour Market Dynamics on the Return–Migration of Immigrants," CReAM Discussion Paper Series 1227, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.

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