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Labor Market Outcomes, Savings Accumulation, and Return Migration

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  • Kirdar, Murat

Abstract

In this paper, I test the savings accumulation conjecture that is used to rationalize return migration decisions in the context of immigrants in Germany. Using cross-country and time variation in purchasing power parity, I distinguish between the two competing capital accumulation conjectures (human capital vs. savings accumulation) and uncover evidence for the savings accumulation conjecture. In addition, I examine how labor market outcomes influence return decisions. A key finding here is that unlike previous studies which find a positive impact of unemployment on return migration, I find that the direction of the impact of unemployment changes by the spell length.

Suggested Citation

  • Kirdar, Murat, 2008. "Labor Market Outcomes, Savings Accumulation, and Return Migration," MPRA Paper 7128, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:7128
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    More about this item

    Keywords

    International Migration; Capital Accumulation; Unemployment; Duration Analysis;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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