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Home Sweet Home?: Macroeconomic Conditions in Home Countries and the Well-Being of Migrants

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  • Alpaslan Akay
  • Olivier Bargain
  • Klaus F. Zimmermann

Abstract

This paper examines whether the subjective well-being of migrants is responsive to fluctuations in macroeconomic conditions in their country of origin. Using the German Socio-Economic Panel for the years 1984 to 2009 and macroeconomic variables for 24 countries of origin, we exploit country-year variation for identification of the effect and panel data to control for migrants’ observed and unobserved characteristics. We find strong evidence that migrants’ well-being responds negatively to an increase in the GDP of their home country. That is, migrants seem to regard home countries as natural comparators, which grounds the idea of relative deprivation underlying the decision to migrate. The effect declines with years-since-migration and with the degree of assimilation in Germany.

Suggested Citation

  • Alpaslan Akay & Olivier Bargain & Klaus F. Zimmermann, 2017. "Home Sweet Home?: Macroeconomic Conditions in Home Countries and the Well-Being of Migrants," Journal of Human Resources, University of Wisconsin Press, vol. 52(2), pages 351-373.
    • Handle: RePEc:uwp:jhriss:v:52:y:2017:i:2:p:351-373
    Note: DOI: 10.3368/jhr.52.2.0115-6900R1
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Home sweet home? Macroeconomic conditions in home countries and the well-being of migrants.
      by maximorossi in NEP-LTV blog on 2016-07-20 17:25:16

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    Cited by:

    1. Estela Núñez-Barriopedro & Rafael Ravina-Ripoll & Eduardo Ahumada-Tello, 2020. "Happiness perception in Spain, a SEM approach to evidence from the sociological research center," Quality & Quantity: International Journal of Methodology, Springer, vol. 54(3), pages 761-779, June.
    2. Zimmermann, Klaus F. & Krause, Annabelle & Chowdhury, Shyamal, 2015. "Arsenic Contamination of Drinking Water and Mental Health," CEPR Discussion Papers 10978, C.E.P.R. Discussion Papers.
    3. Ozan Eksi & Asena Caner & Unay Tamgac Tezcan, 2018. "Relative Deprivation and Life Satisfaction among Europeans: Keeping up with Others," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 32(2), pages 19-46.
    4. Engzell, Per & Ichou, Mathieu, 2019. "Status Loss: The Burden of Positively Selected Immigrants," SocArXiv qr5h7, Center for Open Science.
    5. Stefan Gruber & Gregor Sand, 2022. "Does Migration Pay Off in Later Life? Income and Subjective Well-Being of Older Migrants in Europe," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 160(2), pages 969-988, April.
    6. Alpaslan Akay & Amelie Constant & Corrado Giulietti & Martin Guzi, 2017. "Ethnic diversity and well-being," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(1), pages 265-306, January.
    7. Akay, Alpaslan & Karabulut, Gökhan & Yilmaz, Levent, 2021. "Life Satisfaction, Pro-Activity, and Employment," GLO Discussion Paper Series 784, Global Labor Organization (GLO).
    8. Nguyen, Ha Trong & Duncan, Alan S, 2017. "Exchange rate fluctuations and immigrants' labour market outcomes: New evidence from Australian household panel data," Journal of International Economics, Elsevier, vol. 105(C), pages 174-186.
    9. M. Hendriks & M. J. Burger, 2020. "Unsuccessful Subjective Well-Being Assimilation Among Immigrants: The Role of Faltering Perceptions of the Host Society," Journal of Happiness Studies, Springer, vol. 21(6), pages 1985-2006, August.
    10. Akay, Alpaslan & Martinsson, Peter & Ralsmark, Hilda, 2019. "Relative concerns and sleep behavior," Economics & Human Biology, Elsevier, vol. 33(C), pages 1-14.
    11. Michael Amior & Alan Manning, 2020. "Monopsony and the wage effects of migration," CEP Discussion Papers dp1690, Centre for Economic Performance, LSE.
    12. Jacobsen, Jannes & Krieger, Magdalena & Schikora, Felicitas & Schupp, Jürgen, 2021. "Growing Potentials for Migration Research using the German Socio-Economic Panel Study," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 527-549.
    13. Schröder Carsten & König Johannes & Fedorets Alexandra & Goebel Jan & Grabka Markus M. & Lüthen Holger & Metzing Maria & Schikora Felicitas & Liebig Stefan, 2020. "The economic research potentials of the German Socio-Economic Panel study," German Economic Review, De Gruyter, vol. 21(3), pages 335-371, September.
    14. Akay, Alpaslan & Bargain, Olivier & Elsayed, Ahmed, 2020. "Global terror, well-being and political attitudes," European Economic Review, Elsevier, vol. 123(C).
    15. Devrim Dumludag & Ozge Gokdemir, 2022. "Income Aspiration, Income Comparison and Life Satisfaction: The case of Turkish Migrants in the Netherlands," Journal of Happiness Studies, Springer, vol. 23(4), pages 1359-1378, April.
    16. Artjoms Ivlevs & Milena Nikolova & Carol Graham, 2019. "Emigration, remittances, and the subjective well-being of those staying behind," Journal of Population Economics, Springer;European Society for Population Economics, vol. 32(1), pages 113-151, January.
    17. Akay, Alpaslan & Brausmann, Alexandra & Djajić, Slobodan & Kırdar, Murat G., 2021. "Purchasing-power-parity and the saving behavior of temporary migrants," European Economic Review, Elsevier, vol. 134(C).
    18. Ha Trong Nguyen & Alan Duncan, 2015. "Macroeconomic Fluctuations in Home Countries and Immigrants’ Wellbeing: New Evidence from Down Under," Bankwest Curtin Economics Centre Working Paper series WP1502, Bankwest Curtin Economics Centre (BCEC), Curtin Business School.
    19. Bharadwaj, P. & Doiron, D. & Fiebig, D. G. & Suziedelyte, A., 2020. "Psychological Costs of Migration: Home Country Natural Disasters and Mental Health," Working Papers 20/03, Department of Economics, City University London.
    20. Akay, Alpaslan & Bargain, Olivier & Elsayed, Ahmed, 2018. "Everybody's a Victim? Global Terror, Well-Being and Political Attitudes," Working Papers in Economics 733, University of Gothenburg, Department of Economics.
    21. Ha Trong Nguyen & Luke Brian Connelly, 2018. "Out of sight but not out of mind: Home countries' macroeconomic volatilities and immigrants' mental health," Health Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 189-208, January.
    22. Alpaslan Akay & Gökhan Karabulut, 2020. "Personality and positionality-evidence from survey experiments with alternative goods," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(1), pages 123-156, March.

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    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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