The Working Hours of Immigrants in Germany: Temporary Versus Permanent

32 Pages Posted: 8 Feb 2010

See all articles by Martin Kahanec

Martin Kahanec

IZA Institute of Labor Economics; Central European University; Central European Labour Studies Institute

Michael P. Shields

Central Michigan University - Department of Economics; IZA

Abstract

Migration is often viewed as an investment decision. Temporary migrants can be expected to invest less in accumulating human capital specific to the host country. Instead, they work more hours in order to accumulate savings and invest in financial capital that can be transferred back to their country of origin upon return. In this paper, using German panel data, we explore how temporary migrants differ from permanent migrants in their labor supply decisions and behavior. Upon correcting for endogeneity bias, temporary migrants are found to work more hours than permanent ones. This result supports the human capital theory and a household production model of migration where migrants may be temporary by choice and not because of legal restrictions or even a bad experience in the labor market.

Keywords: migration, temporary migrants, labor supply, Germany

JEL Classification: J22, J61, F22

Suggested Citation

Kahanec, Martin and Shields, Michael P., The Working Hours of Immigrants in Germany: Temporary Versus Permanent. IZA Discussion Paper No. 4735. Available at SSRN: https://ssrn.com/abstract=1549211

Martin Kahanec (Contact Author)

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Central European University ( email )

Nador utca 9
Budapest, H-1051
Hungary

Central European Labour Studies Institute ( email )

Zvolensk√° 29
Bratislava, 82109
Slovakia

HOME PAGE: http://www.celsi.sk

Michael P. Shields

Central Michigan University - Department of Economics ( email )

Mt. Pleasant, MI 48858
United States

IZA

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