The Return Motivations of Legal Permanent Migrants: Evidence from Exchange Rate Shocks and Immigrants in Australia
Why do legal permanent migrants return to their home countries? How do home country conditions influence this decision? This paper uses exogenous home country exchange rate shocks arising from the 1997 Asian Financial Crisis to distinguish return motivations of a national sample of Australian immigrants. On average, a 10% favorable exchange rate shock (a depreciation in the home country currency) leads to a reduced likelihood of return of 0.37 percentage points for migrants. The effect is found to be stronger for those who had pre-existing intentions to return, weaker for those undecided, and zero for those who initially stated their desire to stay. These results favor a life-cycle explanation for migrant behavior and reject the theory that migrants are target earners who seek to invest upon return home.
|Date of creation:||25 Jun 2013|
|Date of revision:|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
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.:
- Murat Kirdar, 2010.
"Source Country Characteristics and Immigrants’ Migration Duration and Saving Decisions,"
Koç University-TUSIAD Economic Research Forum Working Papers
1010, Koc University-TUSIAD Economic Research Forum.
- Kirdar, Murat, 2009. "Source Country Characteristics and Immigrants’ Migration Duration and Saving Decisions," MPRA Paper 13322, University Library of Munich, Germany.
- Kirdar, Murat G., 2010. "Source Country Characteristics and Immigrants' Migration Duration and Saving Decisions," IZA Discussion Papers 4899, Institute for the Study of Labor (IZA).
- Oded Stark & Christian Helmenstein & Yury Yegorov, 1997.
"Migrants' Savings, Purchasing Power Parity, and the Optimal Duration of Migration,"
International Tax and Public Finance,
Springer, vol. 4(3), pages 307-324, July.
- Stark, Oded & Helmenstein, Christian & Yegorov, Yuri, 1997. "Migrants' Savings, Purchasing Power Parity, and the Optimal Duration of Migration," Economics Series 44, Institute for Advanced Studies.
- John Gibson & David McKenzie, 2009.
"The Microeconomic Determinants of Emigration and Return Migration of the Best and Brightest: Evidence from the Pacific,"
CReAM Discussion Paper Series
0903, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
- Gibson, John & McKenzie, David, 2011. "The microeconomic determinants of emigration and return migration of the best and brightest: Evidence from the Pacific," Journal of Development Economics, Elsevier, vol. 95(1), pages 18-29, May.
- Gibson, John & McKenzie, David, 2009. "The microeconomic determinants of emigration and return migration of the best and brightest : evidence from the Pacific," Policy Research Working Paper Series 4965, The World Bank.
- John Gibson & David McKenzie, 2009. "The Microeconomic Determinants of Emigration and Return Migration of the Best and Brightest: Evidence from the Pacific," Working Papers 173, Center for Global Development.
- Gibson, John & McKenzie, David, 2009. "The Microeconomic Determinants of Emigration and Return Migration of the Best and Brightest: Evidence from the Pacific," IZA Discussion Papers 3926, Institute for the Study of Labor (IZA).
- Christian Dustmann & Yoram Weiss, 2007. "Return Migration: Theory and Empirical Evidence from the UK," British Journal of Industrial Relations, London School of Economics, vol. 45(2), pages 236-256, 06.
- Steven Radelet & Jeffrey Sachs, 1998. "The Onset of the East Asian Financial Crisis," NBER Working Papers 6680, National Bureau of Economic Research, Inc.
- Mayer, Thierry & Zignago, Soledad, 2006.
"Notes on CEPII’s distances measures,"
26469, University Library of Munich, Germany.
- Thierry Mayer & Soledad Zignago, 2011. "Notes on CEPII’s distances measures: The GeoDist database," Working Papers 2011-25, CEPII research center.
- Alice Mesnard, 2004. "Temporary migration and capital market imperfections," Oxford Economic Papers, Oxford University Press, vol. 56(2), pages 242-262, April.
- Dustmann, Christian, 2001.
"Return Migration, Wage Differentials, and the Optimal Migration Duration,"
IZA Discussion Papers
264, Institute for the Study of Labor (IZA).
- Dustmann, Christian, 2003. "Return migration, wage differentials, and the optimal migration duration," European Economic Review, Elsevier, vol. 47(2), pages 353-369, April.
- Guillermina Jasso & Mark Rosenzweig, 1982. "Estimating the emigration rates of legal immigrants using administrative and survey data: The 1971 cohort of immigrants to the United States," Demography, Springer, vol. 19(3), pages 279-290, August.
- 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.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:47832. 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: (Joachim Winter)
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.