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Estimating Immigrant Earnings Profiles when Migrations are Temporary

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  • Christian Dustmann

    (Centre for Research and Analysis of Migration (CReAM) University College London (UCL))

  • Joseph-Simon Görlach

    (Centre for Research and Analysis of Migration (CReAM) University College London (UCL))

Abstract

The assumption that all migrations are permanent, which pervaded the early microdata-based research on immigrant career profiles, is not supported by the empirical evidence. Rather, many – if not most – migrations appear to be temporary. In this paper, therefore, we illustrate the estimation challenges when migrations are temporary. As in an overwhelming share of the selective out-migration literature, our basic structure assumes that the process that determines out-migration is unrelated to other choices that affect wage growth, such as human capital investment or labour supply decisions, which greatly simplifies the analysis. When the choice of whether and when to out-migrate also affects decisions that determine wage growth, the problem becomes inherently dynamic and requires a more structural approach to estimation, which we briefly discuss.

Suggested Citation

  • Christian Dustmann & Joseph-Simon Görlach, 2016. "Estimating Immigrant Earnings Profiles when Migrations are Temporary," RF Berlin - CReAM Discussion Paper Series 1609, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    • Handle: RePEc:crm:wpaper:1609
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    References listed on IDEAS

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    Cited by:

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    3. Aziz Ahmed, 2019. "Impacts of Vocational Training for Socio-economic Development of Afghan Refugees in Labor Markets of Host Societies in Baluchistan," Journal of International Migration and Integration, Springer, vol. 20(3), pages 751-768, August.
    4. Raux, Morgan, 2023. "Cultural differences and immigrants’ wages," Labour Economics, Elsevier, vol. 82(C).
    5. Shaikh M.S.U. Eskander & Edward B. Barbier & Benjamin Gilbert, 2018. "Fishing and Nonfishing Income Decisions: The Role of Human Capital and Family Structure," Land Economics, University of Wisconsin Press, vol. 94(1), pages 114-136.
    6. Bassetto, Jacopo & Ippedico, Giuseppe, 2024. "Tax Incentives and Return Migration," IZA Discussion Papers 17224, Institute of Labor Economics (IZA).
    7. Christian Dustmann & Yannis Kastis & Ian Preston, 2023. "Inequality and Immigration," CESifo Working Paper Series 10486, CESifo.
    8. Morgan Raux, 2021. "Cultural differences and immigrants' wages," DEM Discussion Paper Series 21-02, Department of Economics at the University of Luxembourg.
    9. Maruszewski Wojciech & Kaczmarczyk Paweł, 2020. "Economic Integration and Migrant Networks: The Case of Ukrainian Migrants in the Warsaw Agglomeration," Central European Economic Journal, Sciendo, vol. 7(54), pages 258-278, January.

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    More about this item

    Keywords

    immigration; return migration; assimilation; earnings profile; selection;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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