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A life-cycle model of outmigration and economic assimilation of immigrants in Germany

  • Bellemare, Charles

This paper estimates a structural dynamic model of outmigration which incorporate several features of existing outmigration theories but distinguishes itself by introducing uncertainty about future earnings and preferences which allows immigrants to revise their duration decisions throughout their migration experience. Estimation results indicate that outmigration does not depend exclusively on earnings differentials. Immigrants are found to be forward looking decision makers, and simulations show that predicted migration durations can be very sensitive to changes in the economic environment, and differ considerably from those of a myopic model.

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Article provided by Elsevier in its journal European Economic Review.

Volume (Year): 51 (2007)
Issue (Month): 3 (April)
Pages: 553-576

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Handle: RePEc:eee:eecrev:v:51:y:2007:i:3:p:553-576
Contact details of provider: Web page: http://www.elsevier.com/locate/eer

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  15. Bauer, Thomas K. & Kunze, Astrid, 2004. "The Demand for High-Skilled Workers and Immigration Policy," IZA Discussion Papers 999, Institute for the Study of Labor (IZA).
  16. Magnac & Thesmar, 2002. "Identifying dynamic discrete decision processes," Working Papers 155888, Institut National de la Recherche Agronomique, France.
  17. Arthur Lewbel, 2000. "Identification of the Binary Choice Model with Misclassification," Boston College Working Papers in Economics 457, Boston College Department of Economics.
  18. Cohen-Goldner, Sarit & Eckstein, Zvi, 2002. "Labour Mobility of Immigrants: Training, Experience, Language and Opportunities," CEPR Discussion Papers 3412, C.E.P.R. Discussion Papers.
  19. Stark, Oded, 2013. "On the economics of others," University of Tuebingen Working Papers in Economics and Finance 62, University of Tuebingen, Faculty of Economics and Social Sciences.
  20. Dustmann, C. & van Soest, A.H.O., 1998. "Language Fluency and Earnings : Estimation with Misclassified Language Indicators," Discussion Paper 1998-120, Tilburg University, Center for Economic Research.
  21. Jasso, Guillermina & Rosenzweig, Mark R, 1990. "Self-Selection and the Earnings of Immigrants: Comment," American Economic Review, American Economic Association, vol. 80(1), pages 298-304, March.
  22. Dubin, Jeffrey A & McFadden, Daniel L, 1984. "An Econometric Analysis of Residential Electric Appliance Holdings and Consumption," Econometrica, Econometric Society, vol. 52(2), pages 345-62, March.
  23. Christian Dustmann, 1996. "An Economic Analysis of Return Migration," Discussion Papers 96-02 ISSN 1350-6722, University College London, Department of Economics.
  24. Hausman, J. A. & Abrevaya, Jason & Scott-Morton, F. M., 1998. "Misclassification of the dependent variable in a discrete-response setting," Journal of Econometrics, Elsevier, vol. 87(2), pages 239-269, September.
  25. Markus Pannenberg, 1998. "Documentation of Sample Sizes and Panel Attrition in the German Socio Economic Panel (GSOEP) 1984 until 1997," Discussion Papers of DIW Berlin 172, DIW Berlin, German Institute for Economic Research.
  26. Klaus F. Zimmermann, 1995. "Tackling the European Migration Problems," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 45-62, Spring.
  27. Pessino, Carola, 1991. "Sequential migration theory and evidence from Peru," Journal of Development Economics, Elsevier, vol. 36(1), pages 55-87, July.
  28. Bellemare, Charles, 2004. "Identification and Estimation of Economic Models of Outmigration Using Panel Attrition," IZA Discussion Papers 1065, Institute for the Study of Labor (IZA).
  29. Bauer, Thomas K. & Zimmermann, Klaus F., 2000. "Immigration Policy in Integrated National Economies," IZA Discussion Papers 170, Institute for the Study of Labor (IZA).
  30. Dustmann, Christian, 1994. "Return Intentions of Migrants: Theory and Evidence," CEPR Discussion Papers 906, C.E.P.R. Discussion Papers.
  31. Jörn-Steffen Pischke & Johannes Velling, 1997. "Employment Effects Of Immigration To Germany: An Analysis Based On Local Labor Markets," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 594-604, November.
  32. Bellemare, C., 2004. "Identification and Estimation of Economic Models of Outmigration using Panel Attrition," Discussion Paper 2004-28, Tilburg University, Center for Economic Research.
  33. Guillermina Jasso & Mark Rosensweig & James P. Smith, 2003. "The Earnings of US immigrants," Labor and Demography 0312007, EconWPA.
  34. Poterba, James M & Summers, Lawrence H, 1995. "Unemployment Benefits and Labor Market Transitions: A Multinomial Logit Model with Errors in Classification," The Review of Economics and Statistics, MIT Press, vol. 77(2), pages 207-16, May.
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