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Source Country Characteristics and Immigrants' Migration Duration and Saving Decisions

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  • Kirdar, Murat Güray

    (Bogazici University)

Abstract

This paper examines how immigrants' migration duration and saving decisions in the host country respond to the purchasing power parity (ppp) and the wage ratio between the host and source countries. It is shown that in theory immigrants may stay longer in the host country as a result of an increase in ppp, in particular those with a high willingness to substitute consumption intertemporally. However, the empirical results from immigrants in Germany reveal that optimal migration duration decreases in ppp. Holding individual immigrant characteristics constant, immigrants from poorer source countries have shorter migration duration than immigrants from wealthier source countries. The empirical results also reveal that saving rate increases in ppp.

Suggested Citation

  • Kirdar, Murat Güray, 2010. "Source Country Characteristics and Immigrants' Migration Duration and Saving Decisions," IZA Discussion Papers 4899, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp4899
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    Cited by:

    1. Sylvie Démurger & Hui Xu, 2011. "Left-Behind Children and Return Decisions of Rural Migrants in China," Post-Print halshs-00625636, HAL.
    2. Slobodan Djajić, 2009. "On the welfare implications of temporary and permanent immigration," Bank i Kredyt, Narodowy Bank Polski, vol. 40(5), pages 49-60.
    3. Abarcar, Paolo, 2017. "The return motivations of legal permanent migrants: Evidence from exchange rate shocks and immigrants in Australia," Journal of Economic Behavior & Organization, Elsevier, vol. 144(C), pages 62-77.
    4. Djajić, Slobodan & Vinogradova, Alexandra, 2015. "Overshooting the Savings Target: Temporary Migration, Investment in Housing and Development," World Development, Elsevier, vol. 65(C), pages 110-121.
    5. Alexandra Vinogradova, 2016. "Illegal immigration, deportation policy, and the optimal timing of return," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(3), pages 781-816, July.
    6. Hera Susanti & Arie Damayanti, 2015. "Determinants of Internal Migration in Indonesia," Working Papers in Economics and Business 201505, Faculty of Economics and Business, University of Indonesia, revised Oct 2015.
    7. Slobodan Djajić, 2013. "Some Essentials Of A Workable Guest‐Worker Program," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 54(2), pages 739-766, May.

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    More about this item

    Keywords

    immigrant workers; international migration;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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