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An Economic Analysis of Return Migration

Author

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  • Christian Dustmann

    (University College London
    CEPR, London)

Abstract

This paper develops a model which rationalizes the decision of a migrant to return to his home country, despite a persistent higher wage in the host country, and provides a careful analysis of the optimal duration in the host country. Three motives for a temporary migration are provided: Differences in relative prices in host- and home country, the possibility of accumulating human capital abroad which is only earnings-effective back home, and complementaries between consumption and the location where consumption takes place. The optimal duration in the host country is then investigated, and the analysis produces some surprising and unexpected results.

Suggested Citation

  • Christian Dustmann, 1996. "An Economic Analysis of Return Migration," Discussion Papers 96-02 ISSN 1350-6722, University College London, Department of Economics.
    • Handle: RePEc:wuk:ucloec:9602
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    References listed on IDEAS

    as
    1. Raffelhuschen, Bernd, 1992. "Labor migration in Europe : Experiences from Germany after unification," European Economic Review, Elsevier, vol. 36(7), pages 1453-1471, October.
    2. Sherwin Rosen, 1972. "Learning by Experience as Joint Production," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 86(3), pages 366-382.
    3. Oded Stark, 1991. "The Migration of Labor," Blackwell Books, Wiley Blackwell, number 1557860300, February.
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    Cited by:

    1. Longva, Pal, 2001. "Out-migration of immigrants : implications for assimilation analysis," Memorandum 04/2001, Oslo University, Department of Economics.
    2. Bellemare, Charles, 2007. "A life-cycle model of outmigration and economic assimilation of immigrants in Germany," European Economic Review, Elsevier, vol. 51(3), pages 553-576, April.
    3. Gijs Beets & Frans Willekens, 2009. "The global economic crisis and international migration: An uncertain outlook," Vienna Yearbook of Population Research, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna, vol. 7(1), pages 19-37.
    4. Lena Nekby, 2006. "The emigration of immigrants, return vs onward migration: evidence from Sweden," Journal of Population Economics, Springer;European Society for Population Economics, vol. 19(2), pages 197-226, June.
    5. Lutz Hendricks, "undated". "Migration and Human Capital," Working Papers 97/6, Arizona State University, Department of Economics.

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    More about this item

    Keywords

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    JEL classification:

    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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