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Reference standards for income comparisons: evidence from immigrants' return visits

Listed author(s):
  • Holger Stichnoth

    ()

    (ZEW Mannheim)

The present paper shows evidence consistent with Falk and Knell's (2004) prediction that individuals' reference income increases with ability. To overcome the difficulty that the reference income is not observed in most data sets, I use indirect evidence from immigrants return visits to their countries of origin. Falk and Knell's model predicts that more educated immigrants are less likely to have returned to their country of origin for a visit, and that they are more likely to have difficulty feeling at home when they do return for a visit. Both predictions are tested using data from the German Socio-Economic Panel and cannot be rejected.

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File URL: http://www.accessecon.com/Pubs/EB/2013/Volume33/EB-13-V33-I4-P255.pdf
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Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 33 (2013)
Issue (Month): 4 ()
Pages: 2707-2717

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Handle: RePEc:ebl:ecbull:eb-13-00557
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  10. Ciro Avitabile & Irma Clots-Figueras & Paolo Masella, 2014. "Citizenship, Fertility, and Parental Investments," American Economic Journal: Applied Economics, American Economic Association, vol. 6(4), pages 35-65, October.
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  13. Ciro Avitabile & Irma Clots-Figueras & Paolo Masella, 2013. "The Effect of Birthright Citizenship on Parental Integration Outcomes," Journal of Law and Economics, University of Chicago Press, vol. 56(3), pages 777-810.
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  15. Erzo F. P. Luttmer, 2005. "Neighbors as Negatives: Relative Earnings and Well-Being," The Quarterly Journal of Economics, Oxford University Press, vol. 120(3), pages 963-1002.
  16. Anzelika Zaiceva & Klaus Zimmermann, 2011. "Do ethnic minorities “stretch” their time? UK household evidence on multitasking," Review of Economics of the Household, Springer, vol. 9(2), pages 181-206, June.
  17. Schwarze, Johannes & Harpfer, Marco, 2007. "Are people inequality averse, and do they prefer redistribution by the state?: Evidence from German longitudinal data on life satisfaction," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(2), pages 233-249, April.
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