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RETURN MIGRATION IN A LIFE-CYCLE SETTING: An Exploratory Study of Pakistani Migrants in Saudi Arabia

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  • Hafiz A. PASHA
  • Mir Anjum ALTAF*

Abstract

This paper sets up a choice theoretic, dynamic optimization model in a life cycle setting, within which a temporary international migrant attempts to maximize a lifetime utility function. The choice variables are consumption at each point in time and the period of stay abroad. Determinants of the latter choice are the time stream of benefits and costs associated with migration. Benefits consist primarily of the jump in income levels. Costs comprise, first, of initial job-search and travel costs, second, of higher living costs abroad and, third, of ‘psychic’ costs due to family separation and cultural alienation. The model is applied to a data set of 417 Pakistani workers in Saudi Arabia. The impact of income ‘shocks’ of varying magnitude on planned lengths of stay abroad is simulated. It appears that the decline in wages has to be substantial, over 50 per cent, before, more or less, immediate large-scale return migration can commence to Pakistan.

Suggested Citation

  • Hafiz A. PASHA & Mir Anjum ALTAF*, 1987. "RETURN MIGRATION IN A LIFE-CYCLE SETTING: An Exploratory Study of Pakistani Migrants in Saudi Arabia," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 6(1), pages 1-23.
    • Handle: RePEc:pje:journl:article1987sumi
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    Cited by:

    1. Dadush, Uri, 2018. "The economic effects of refugee return," Economics Discussion Papers 2018-22, Kiel Institute for the World Economy (IfW Kiel).
    2. G.M. Arif, 1998. "Reintegration of Pakistani Return Migrants from the Middle East in the Domestic Labour Market," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 37(2), pages 99-124.
    3. Ahmed, Vaqar & Sugiyarto, Guntur & Jha, Shikha, 2010. "Remittances and Household Welfare: A Case Study of Pakistan," ADB Economics Working Paper Series 194, Asian Development Bank.

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