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| Author: | Dustmann, C. |
| Title: | Return migration, wage differentials, and the optimal migration duration |
| Journal: | European Economic Review
2003 : APR, VOL. 47:2, p. 353-367 |
| Index terms: | Pay differentials Life cycles International Migration Models |
| Language: | eng |
| Abstract: | In simple static models, migration increases with the wage differential btw. host- and home-country. In a dynamic framework, and if migrations are temporary, the size of the migrant population in the host country depends also on the migration duration. This paper analyzes optimal migration durations in a model rationalizing the decision of the migrant to return to his home country, despite persistently higher wages in the host country. The analysis shows that, if migrations are temporary, the optimal migration duration may decrease if the wage differential grows larger. Using micro data for Germany, the second part of the paper provides empirical evidence which is compatible with this hypothesis. |
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