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Economic Assimilation and Outmigration of Immigrants in West-Germany

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  • Bellemare, C.

    (Tilburg University, Center For Economic Research)

Abstract

By analyzing earnings of observed immigrants workers, the literature on the economic assimilation of immigrants has generally overlooked two potentially important selectivity issues.First, earnings of immigrant workers may di¿er substantially from those of non-workers.Second, earnings of immigrants who do not return to their native country may differ from earnings of outmigrants. Economic theory has contradictory predictions on the signs of these potential selection biases.This paper uses data drawn from 8 waves of the German Socio-Economic Panel and estimates a three-equation model of income, work and outmigration decisions taking into account time-invariant unobserved heterogeneity across individuals.We -nd strong evidence in favor of negative outmigration selection in both the earnings and work equations.Simulation results show that the magnitude of the outmigration bias is important.

Suggested Citation

  • Bellemare, C., 2003. "Economic Assimilation and Outmigration of Immigrants in West-Germany," Discussion Paper 2003-65, Tilburg University, Center for Economic Research.
  • Handle: RePEc:tiu:tiucen:345b53a4-5ce7-48a4-ac84-7ad4b4abc506
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    File URL: https://pure.uvt.nl/ws/portalfiles/portal/545939/65.pdf
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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.
    2. 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.
    3. Dustmann, C, 1993. "Earnings Adjustment of Temporary Migrants," Journal of Population Economics, Springer;European Society for Population Economics, vol. 6(2), pages 153-168, May.
    4. Wei-Yin Hu, 2000. "Immigrant Earnings Assimilation: Estimates from Longitudinal Data," American Economic Review, American Economic Association, vol. 90(2), pages 368-372, May.
    5. repec:adr:anecst:y:1999:i:55-56:p:09 is not listed on IDEAS
    6. Catherine Y. Co & Ira N. Gang & Myeong-Su Yun, 2000. "Returns to returning," Journal of Population Economics, Springer;European Society for Population Economics, vol. 13(1), pages 57-79.
    7. Stark, Oded, 1995. " Return and Dynamics: The Path of Labor Migration When Workers Differ in Their Skills and Information Is Asymmetric," Scandinavian Journal of Economics, Wiley Blackwell, vol. 97(1), pages 55-71, March.
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    Cited by:

    1. KIrdar, Murat G., 2009. "Labor market outcomes, savings accumulation, and return migration," Labour Economics, Elsevier, vol. 16(4), pages 418-428, August.
    2. Murat G. Kirdar, 2007. "Labor Market Outcomes, Capital Accumulation, and Return Migration: Evidence from Immigrants in Germany," ERC Working Papers 0703, ERC - Economic Research Center, Middle East Technical University, revised Jan 2007.
    3. Kari Hämäläinen & Aki Kangasharju & Sari Pekkala & Matti Sarvimäki, 2005. "Employment Assimilation of Immigrants - Evidence from Finland," ERSA conference papers ersa05p75, European Regional Science Association.
    4. Kirdar, Murat, 2007. "Labor market outcomes, capital accumulation, and return migration: Evidence from immigrants in Germany," MPRA Paper 2028, University Library of Munich, Germany.

    More about this item

    Keywords

    immigration; migration; unemployment; economic theory; labour economics; assimilation;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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