Labor Market Outcomes, Savings Accumulation, and Return Migration

Kirdar, Murat (2008): Labor Market Outcomes, Savings Accumulation, and Return Migration.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: International Migration; Capital Accumulation; Unemployment; Duration Analysis
• Subjects: F - International Economics > F2 - International Factor Movements and International Business > F22 - International Migration; C - Mathematical and Quantitative Methods > C4 - Econometric and Statistical Methods: Special Topics > C41 - Duration Analysis ; Optimal Timing Strategies; J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers > J61 - Geographic Labor Mobility ; Immigrant Workers