IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

A Life-Cycle Model of Outmigration and Economic Assimilation of Immigrants in Germany

  • Bellemare, Charles

    ()

    (Université Laval)

This paper estimates a structural dynamic life-cycle model of outmigration where, in each period, immigrants choose whether to work in the host country, not to work but remain in the host country, or outmigrate. The model incorporates several features of existing life-cycle theories of outmigration but distinguishes itself by introducing uncertainty in about future earnings and preferences which allows immigrants to revise their duration decisions throughout their migration experience. We overcome the problem of not directly observing outmigration movements by using panel attrition as a proxy variable and use a simple method to correct for the fact that part of the attrition is not a consequence of outmigration. Estimates are used to predict changes in life-cycle patterns of outmigration behavior. Estimation results indicate that outmigration does not depend exclusively on earnings differentials. Estimated assimilation rates are found to be robust to selection effects. Immigrants are found to be forward looking decision makers, and simulations show that predicted migration durations are very sensitive to changes in their economic environment and differ considerably from those of a myopic model.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://ftp.iza.org/dp1012.pdf
Download Restriction: no

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1012.

as
in new window

Length: 34 pages
Date of creation: Feb 2004
Date of revision:
Publication status: published in: European Economic Review, 2007, 51 (3), 553-576
Handle: RePEc:iza:izadps:dp1012
Contact details of provider: Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org

Order Information: Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Email:


References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. T. Paul Schultz, 1998. "Immigrant quality and assimilation: A review of the US literature," Journal of Population Economics, Springer, vol. 11(2), pages 239-252.
  2. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-42, March.
  3. 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.
  4. Lewbel, Arthur, 2000. "Identification Of The Binary Choice Model With Misclassification," Econometric Theory, Cambridge University Press, vol. 16(04), pages 603-609, August.
  5. Dustmann, Christian & Kirchkamp, Oliver, 2002. "The optimal migration duration and activity choice after re-migration," Journal of Development Economics, Elsevier, vol. 67(2), pages 351-372, April.
  6. 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.
  7. 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.
  8. Stark, Oded, 2014. "On the economics of others," Discussion Papers 164965, University of Bonn, Center for Development Research (ZEF).
  9. Christian Dustmann & Arthur van Soest, 2001. "Language Fluency And Earnings: Estimation With Misclassified Language Indicators," The Review of Economics and Statistics, MIT Press, vol. 83(4), pages 663-674, November.
  10. Bellemare, C., 2004. "Identification and Estimation of Economic Models of Outmigration using Panel Attrition," Discussion Paper 2004-28, Tilburg University, Center for Economic Research.
  11. Pessino, Carola, 1991. "Sequential migration theory and evidence from Peru," Journal of Development Economics, Elsevier, vol. 36(1), pages 55-87, July.
  12. van der Klaauw, Wilbert, 1996. "Female Labour Supply and Marital Status Decisions: A Life-Cycle Model," Review of Economic Studies, Wiley Blackwell, vol. 63(2), pages 199-235, April.
  13. 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.
  14. Carrington, William J & Detragiache, Enrica & Vishwanath, Tara, 1996. "Migration with Endogenous Moving Costs," American Economic Review, American Economic Association, vol. 86(4), pages 909-30, September.
  15. Edin, P.-A. & Lalonde, R.J. & Aslund, O., 2000. "Emigration of Immigrants and Measures of Immigrant Assimilation: Evidence from Sweden," Papers 2000-13, Uppsala - Working Paper Series.
  16. 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.
  17. Bound, John & Brown, Charles & Mathiowetz, Nancy, 2001. "Measurement error in survey data," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 59, pages 3705-3843 Elsevier.
  18. Christian Dustmann, 1996. "An Economic Analysis of Return Migration," Discussion Papers 96-02 ISSN 1350-6722, University College London, Department of Economics.
  19. Darren Lubotsky, 2000. "Chutes or Ladders? A Longitudinal Analysis of Immigrant Earnings," Labor and Demography 0004006, EconWPA.
  20. Robert J. LaLonde & Robert H. Topel, 1992. "The Assimilation of Immigrants in the U. S. Labor Market," NBER Chapters, in: Immigration and the Workforce: Economic Consequences for the United States and Source Areas, pages 67-92 National Bureau of Economic Research, Inc.
  21. Dustmann, Christian, 1994. "Return Intentions of Migrants: Theory and Evidence," CEPR Discussion Papers 906, C.E.P.R. Discussion Papers.
  22. 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.
  23. Bauer, Thomas K. & Zimmermann, Klaus F., 2000. "Immigration Policy in Integrated National Economies," IZA Discussion Papers 170, Institute for the Study of Labor (IZA).
  24. 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).
  25. Wei-Yin Hu, 2000. "Immigrant Earnings Assimilation: Estimates from Longitudinal Data," American Economic Review, American Economic Association, vol. 90(2), pages 368-372, May.
  26. William A. V. Clark & Anita I. Drever, 2001. "Do Immigrants Improve Their Housing Quality When They Move?: Evidence from the German Socio-Economic Panel," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 70(1), pages 87-94.
  27. Dustmann, Christian, 2000. "Temporary Migration and Economic Assimilation," IZA Discussion Papers 186, Institute for the Study of Labor (IZA).
  28. Bauer, Thomas K. & Kunze, Astrid, 2003. "The Demand for High-skilled Worker and Immigration Policy," RWI Discussion Papers 11, Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI).
  29. Thierry Magnac & David Thesmar, 2002. "Identifying Dynamic Discrete Decision Processes," Econometrica, Econometric Society, vol. 70(2), pages 801-816, March.
  30. Guillermina Jasso & Mark Rosensweig & James P. Smith, 2003. "The Earnings of US immigrants," Labor and Demography 0312007, EconWPA.
  31. Charles Bellemare, 2004. "Identification and Estimation of the Economic Performance of Outmigrants using Panel Attrition," Cahiers de recherche 0429, CIRPEE.
  32. 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.
  33. Klaus F. Zimmermann, 1995. "Tackling the European Migration Problems," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 45-62, Spring.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp1012. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.