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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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    References listed on IDEAS

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    1. Oded Stark & Christian Helmenstein & Yury Yegorov, 1997. "Migrants' Savings, Purchasing Power Parity, and the Optimal Duration of Migration," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 4(3), pages 307-324, July.
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    5. Amelie Constant & Douglas S. Massey, 2003. "Self-selection, earnings, and out-migration: A longitudinal study of immigrants to Germany," Journal of Population Economics, Springer;European Society for Population Economics, vol. 16(4), pages 631-653, November.
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    7. Dean Yang, 2006. "Why Do Migrants Return to Poor Countries? Evidence from Philippine Migrants' Responses to Exchange Rate Shocks," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 715-735, November.
    8. Borjas, George J & Bratsberg, Bernt, 1996. "Who Leaves? The Outmigration of the Foreign-Born," The Review of Economics and Statistics, MIT Press, vol. 78(1), pages 165-176, February.
    9. Abdurrahman Aydemir & Chris Robinson, 2008. "Global labour markets, return, and onward migration," Canadian Journal of Economics, Canadian Economics Association, vol. 41(4), pages 1285-1311, November.
    10. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, Oxford University Press, vol. 119(1), pages 249-275.
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    13. 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;Population Association of America (PAA), vol. 19(3), pages 279-290, August.
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    Cited by:

    1. Govert Bijwaard, 2015. "Income of immigrants and their return," IZA World of Labor, Institute for the Study of Labor (IZA), pages 141-141, April.
    2. Christian Dustmann, 2014. "Selective Outmigration and the Estimation of Immigrants Earnings Profiles," CReAM Discussion Paper Series 1402, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    3. Murat G. Kirdar, 2012. "Estimating The Impact Of Immigrants On The Host Country Social Security System When Return Migration Is An Endogenous Choice," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 53(2), pages 453-486, May.
    4. Marini, Annalisa, 2016. "Immigrants, Trust and Social Traps," MPRA Paper 69627, University Library of Munich, Germany, revised Feb 2016.
    5. Govert E. Bijwaard & Qi Wang, 2016. "Return Migration of Foreign Students," European Journal of Population, Springer;European Association for Population Studies, vol. 32(1), pages 31-54, February.
    6. Govert E. Bijwaard & Christian Schluter & Jackline Wahba, 2014. "The Impact of Labor Market Dynamics on the Return Migration of Immigrants," The Review of Economics and Statistics, MIT Press, vol. 96(3), pages 483-494, July.
    7. Shan Li, 2016. "The determinants of Mexican migrants’ duration in the United States: family composition, psychic costs, and human capital," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-28, December.
    8. Jackline Wahba, 2014. "Return migration and economic development," Chapters,in: International Handbook on Migration and Economic Development, chapter 12, pages 327-349 Edward Elgar Publishing.
    9. Anda David & Mohamed Ali Marouani, 2013. "The Impact of Labor Mobility on Unemployment: A Comparison between Jordan and Tunisia," Working Papers 823, Economic Research Forum, revised Dec 2013.
    10. Hulya Ulku, 2012. "Remitting Behaviour of Turkish Migrants: Evidence from Household Data in Germany," Urban Studies, Urban Studies Journal Limited, vol. 49(14), pages 3139-3158, November.
    11. Dominique Lemmermann & Regina T. Riphahn, 2016. "The causal effect of age at migration on youth educational attainment," Working Papers 166, Bavarian Graduate Program in Economics (BGPE).
    12. Eric Schuss, 2016. "Between Life Cycle Model, Labor Market Integration and Discrimination: An Econometric Analysis of the Determinants of Return Migration," SOEPpapers on Multidisciplinary Panel Data Research 881, DIW Berlin, The German Socio-Economic Panel (SOEP).
    13. Rémi Bazillier & Francesco Magris & Daniel Mirza, 2017. "Out-migration and economic cycles," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 153(1), pages 39-69, February.
    14. Kirdar, Murat, 2009. "Source Country Characteristics and Immigrants’ Migration Duration and Saving Decisions," MPRA Paper 13322, University Library of Munich, Germany.
    15. Govert E. Bijwaard & Christian Schluter & Jackline Wahba, 2012. "The Impact of Labour Market Dynamics on the Return–Migration of Immigrants," CReAM Discussion Paper Series 1227, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    16. Bastien Chabé-Ferret & Joël Machado & Jackline Wahba, 2016. "Return Plans and Migrants' Behavior," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2016016, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    17. repec:dau:papers:123456789/14987 is not listed on IDEAS
    18. Giuseppe Arcangelis & Majlinda Joxhe, 2015. "How do migrants save? Evidence from the British Household Panel Survey on temporary and permanent migrants versus natives," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-23, December.
    19. repec:bla:presci:v:95:y:2016:i:4:p:733-754 is not listed on IDEAS
    20. Strom, Steinar & Venturini, Alessandra & Villosio, Claudia, 2013. "Wage Assimilation: Migrants versus Natives and Foreign Migrants versus Internal Migrants," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201341, University of Turin.
    21. Diehl, Claudia & Liebau, Elisabeth, 2015. "Turning back to Turkey - or Turning the Back on Germany? Remigration Intentions and Behavior of Turkish Immigrants in Germany between 1984 and 2011," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 22-41.
    22. Stefano Breschi & Francesco Lissoni & Ernest Miguelez, 2018. "Return Migrants' Self-selection: Evidence For Indian Inventors," NBER Chapters,in: The Role of Immigrants and Foreign Students in Science, Innovation, and Entrepreneurship National Bureau of Economic Research, Inc.
    23. repec:eee:ecoedu:v:63:y:2018:i:c:p:78-99 is not listed on IDEAS
    24. Andersen, Torben M. & Migali, Silvia, 2016. "Migrant Workers and the Welfare State," IZA Discussion Papers 9940, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    International Migration; Capital Accumulation; Unemployment; Duration Analysis;

    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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