Return Migration, Wage Differentials, and the Optimal Migration Duration
In simple static models, migration increases with the wage differential between host and home country. In a dynamic framework, and if migrations are temporary, the size of the migrant population in the host country depends also on the migration duration. This paper analyses optimal migration durations in a model which rationalises the decision of the migrant to return to his home country, despite persistently higher wages in the host country. The analysis shows that, if migrations are temporary, the optimal migration duration may decrease if the wage differential grows larger. Using micro data for Germany, the second part of the paper provides some empirical evidence which is compatible with this hypothesis.
|Date of creation:||Feb 2001|
|Publication status:||published in: European Economic Review, 47 (2), 2003, 353-369|
|Contact details of provider:|| Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany|
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Sonderforschungsbereich 504 Publications
00-39, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
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- Dustmann, Christian & Kirchkamp, Oliver, 2000. "The optimal migration duration and activity choice after re-migration," Papers 00-39, Sonderforschungsbreich 504.
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