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Immigrants’ Wage Growth and Selective Out‐Migration

Author

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  • Govert E. Bijwaard
  • Jackline Wahba

Abstract

This paper examines immigrant wage growth taking selective out‐migration into account using administrative data from the Netherlands. Addressing a limitation in the previous literature, we address the potential endogeneity of immigrants’ labour supply and out‐migration decisions on their earning profiles using a correlated competing risk model. We distinguish between labour and family migrants, given their different labour market and out‐migration behaviours. Our findings show that accounting for selective labour supply is as important as accounting for selective out‐migration. Controlling only for out‐migration selectivity would underestimate immigrants’ wage growth, whilst controlling only for labour market selectivity would overestimate their wage growth. This shows that different selections are important for different types of migrants.

Suggested Citation

  • Govert E. Bijwaard & Jackline Wahba, 2019. "Immigrants’ Wage Growth and Selective Out‐Migration," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 81(5), pages 1065-1094, October.
    • Handle: RePEc:bla:obuest:v:81:y:2019:i:5:p:1065-1094
    DOI: 10.1111/obes.12295
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    Cited by:

    1. Gorshkov, Andrei, 2024. "Job ladders and labour market assimilation of immigrants," Labour Economics, Elsevier, vol. 90(C).
    2. Amer Ahmed & Laurent Bossavie, 2022. "Toward Safer and More Productive Migration for South Asia," World Bank Publications - Books, The World Bank Group, number 37444, April.
    3. Giacomo Boffi, 2024. "Temporary Employment of First-Generation Migrants in the Netherlands," Journal of International Migration and Integration, Springer, vol. 25(1), pages 1-35, March.
    4. Elida Cena & Derek Heim, 2022. "A Regretful Journey Home: Albanian Return Migration in the Wake of the Global Financial Crisis of 2008," Journal of International Migration and Integration, Springer, vol. 23(2), pages 499-518, June.
    5. Govert E. Bijwaard & Jackline Wahba, 2023. "Return Versus onward Migration: Go Back or Move On?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 69(3), pages 640-667, September.
    6. Agata Górny & Govert Ewout Bijwaard & Magdalena Grabowska, 2025. "The role of parenthood and gender in shaping circulation patterns of Ukrainian migration to Poland," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 53(23), pages 705-752.

    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies

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