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Analyzing the Labor Market Activity of Immigrant Families in Germany

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  • Leilanie Basilio
  • Thomas K. Bauer

    ()

  • Mathias Sinning

    ()

Abstract

This paper analyzes whether immigrant families facing credit constraints adopt a family investment strategy wherein,upon arrival,an immigrant spouse invests in host country-specific human capital while the other partner works to finance the family’s current consumption. Using data for West Germany, we do not find evidence for such a specialization strategy.We further examine the labor supply and wage assimilation of families whose members immigrated together relative to families whose members immigrated sequentially. Our estimates indicate that this differentiation is relevant for the analysis of the labor market activities of migrant households.

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File URL: http://repec.rwi-essen.de/files/REP_07_024.pdf
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Bibliographic Info

Paper provided by Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen in its series Ruhr Economic Papers with number 0024.

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Length: 38 pages
Date of creation: Aug 2007
Date of revision:
Handle: RePEc:rwi:repape:0024

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Keywords: International migration; assimilation; family investment hypothesis;

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References

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  1. Borjas, George J & Bronars, Stephen G, 1991. "Immigration and the Family," Journal of Labor Economics, University of Chicago Press, vol. 9(2), pages 123-48, April.
  2. Cobb-Clark, Deborah & Crossley, Thomas F., 2004. "Revisiting the family investment hypothesis," Labour Economics, Elsevier, vol. 11(3), pages 373-393, June.
  3. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  4. Fertig, Michael & Schmidt, Christoph M., 2001. "First- and Second-Generation Migrants in Germany - What Do We Know and What Do People Think," IZA Discussion Papers 286, Institute for the Study of Labor (IZA).
  5. Mincer, Jacob, 1978. "Family Migration Decisions," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 749-73, October.
  6. Francine D. Blau & Lawrence M. Kahn & Joan Y. Moriarty & Andre Portela Souza, 2003. "The Role of the Family in Immigrants' Labor-Market Activity: An Evaluation of Alternative Explanations: Comment," American Economic Review, American Economic Association, vol. 93(1), pages 429-447, March.
  7. Heather Antecol & Deborah A. Cobb-Clark & Stephen J. Trejo, . "Immigration Policy and the Skills of Immigrants to Australia, Canada, and the United States," Claremont Colleges Working Papers 2001-26, Claremont Colleges.
  8. Baker, Michael & Benjamin, Dwayne, 1997. "The Role of the Family in Immigrants' Labor-Market Activity: An Evaluation of Alternative Explanations," American Economic Review, American Economic Association, vol. 87(4), pages 705-27, September.
  9. Dustmann, C, 1993. "Earnings Adjustment of Temporary Migrants," Journal of Population Economics, Springer, vol. 6(2), pages 153-68, May.
  10. 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.
  11. Francine D. Blau & Lawrence M. Kahn & Joan Y. Moriarty & Andre Portela Souza, 2002. "The Role of the Family in Immigrants' Labor-Market Activity: Evidence from the United States," NBER Working Papers 9051, National Bureau of Economic Research, Inc.
  12. Charles M. Beach & Christopher Worswick, 1993. "Is There a Double-Negative Effect on the Earnings of Immigrant Women?," Canadian Public Policy, University of Toronto Press, vol. 19(1), pages 36-53, March.
  13. Christopher Worswick, 1996. "Immigrant Families in the Canadian Labour Market," Canadian Public Policy, University of Toronto Press, vol. 22(4), pages 378-396, December.
  14. Harriet Duleep & Seth Sanders, 1993. "The decision to work by married immigrant women," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 46(4), pages 677-690, July.
  15. 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.
  16. Zimmermann, Klaus F. (ed.), 2005. "European Migration: What Do We Know?," OUP Catalogue, Oxford University Press, number 9780199257355, Octomber.
  17. 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.
  18. Martin, Philip L., 2002. "Germany: Managing Migration in the 21st Century," Institute of European Studies, Working Paper Series qt1gb6j203, Institute of European Studies, UC Berkeley.
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Citations

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Cited by:
  1. Nottmeyer, Olga, 2011. "Couple's Relative Labor Supply in Intermarriage," IZA Discussion Papers 5567, Institute for the Study of Labor (IZA).
  2. Seik Kim & Nalina Varanasi, . "Labor Supply of Married Women in Credit-Constrained Households: Theory and Evidence," Working Papers UWEC-2010-01, University of Washington, Department of Economics.
  3. Mathias Sinning, 2011. "Determinants of savings and remittances: empirical evidence from immigrants to Germany," Review of Economics of the Household, Springer, vol. 9(1), pages 45-67, March.
  4. Bredtmann, Julia & Otten, Sebastian, 2013. "The Role of Source- and Host-Country Characteristics in Female Immigrant Labor Supply," MPRA Paper 44544, University Library of Munich, Germany.
  5. Zizi GOSCHIN & Monica ROMAN, 2012. "Determinants of the remitting behaviour of Romanian emigrants in an economic crisis context," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 3, pages 87-103, December.

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