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Return migration and the age profile of retirement among immigrants

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  • Deborah A Cobb-Clark

    (University of Melbourne)

  • Steven Stillman

    (University of Otago)

Abstract

We analyze the relationship between the age profile of retirement within an immigrant population and aggregate return migration rates for individuals from different countries of origin. The latter serves as a proxy for the relative net benefits of return migration to that origin country. Our simple theoretical model illustrates that under reasonable conditions the probability of return migration is maximized at retirement. This implies that different immigrant populations will have different retirement profiles, not only because individual retirement behavior differs, but also because the propensity for return migration varies. Consistent with our theoretical model, we estimate a negative relationship between immigrants’ retirement status and the aggregate return migration rate of their fellow countrymen. As theory suggests, this link is strongest for immigrants who are near the retirement age. JEL codes J260, J010, J080

Suggested Citation

  • Deborah A Cobb-Clark & Steven Stillman, 2013. "Return migration and the age profile of retirement among immigrants," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-20, December.
    • Handle: RePEc:spr:izamig:v:2:y:2013:i:1:d:10.1186_2193-9039-2-20
    DOI: 10.1186/2193-9039-2-20
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    Cited by:

    1. Christian Dustmann & Joseph-Simon Görlach, 2016. "The Economics of Temporary Migrations," Journal of Economic Literature, American Economic Association, vol. 54(1), pages 98-136, March.
    2. Merita Zulfiu Alili & Nick Adnett, 2021. "Return migrants in Albania: The determinants of “entrepreneurial gain”," Review of Development Economics, Wiley Blackwell, vol. 25(3), pages 1761-1777, August.
    3. Augustin De Coulon, 2016. "Where do immigrants retire to?," IZA World of Labor, Institute of Labor Economics (IZA), pages 297-297, September.
    4. Tony Ward, 2021. "Return Migration from Nineteenth Century Australia: Key Drivers and Gender Differences," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 61(1), pages 80-101, March.
    5. Deborah A. Cobb‐Clark & Lihini De Silva, 2021. "Participation, Unemployment, and Wages," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 54(4), pages 482-493, December.
    6. Anzelika Zaiceva, 2014. "The impact of aging on the scale of migration," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-99, November.
    7. Zaiceva, A. & Zimmermann, K.F., 2016. "Migration and the Demographic Shift," Handbook of the Economics of Population Aging, in: Piggott, John & Woodland, Alan (ed.), Handbook of the Economics of Population Aging, edition 1, volume 1, chapter 0, pages 119-177, Elsevier.
    8. Eric Schuss, 2016. "Between Life Cycle Model, Labor Market Integration and Discrimination: An Econometric Analysis of the Determinants of Return Migration," SOEPpapers on Multidisciplinary Panel Data Research 881, DIW Berlin, The German Socio-Economic Panel (SOEP).
    9. Schuß, Eric, 2016. "Between Life Cycle Model, Labor Market Integration and Discrimination: An Econometric Analysis of the Determinants of Return Migration," VfS Annual Conference 2016 (Augsburg): Demographic Change 145538, Verein für Socialpolitik / German Economic Association.

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    More about this item

    Keywords

    Retirement; Immigrants; Return migration; Emigration; Australia;
    All these keywords.

    JEL classification:

    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies

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