The Impact of Labour Market Dynamics on the Return-Migration of Immigrants

29 Pages Posted: 31 May 2011

See all articles by Govert E. Bijwaard

Govert E. Bijwaard

Netherlands Interdisciplinary Demographic Institute (NIDI); Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE); IZA Institute of Labor Economics

Christian Schluter

University of Southampton - Division of Economics

Jackline Wahba

University of Southampton, Department of Economics; IZA Institute of Labor Economics

Abstract

Using administrative panel data on the entire population of new labour immigrants to The Netherlands, we estimate the causal effects of labour dynamics on their return decisions. Specifically, the roles of unemployment and re-employment spells on immigration durations are examined. The endogeneity of labour market outcomes and the return migration decision, if ignored, confounds the causal effect. This empirical challenge is addressed using the "timing-of-events" method. We estimate the model separately for distinct immigrant groups, and find that, overall, unemployment spells shorten immigration durations, while re-employment spells delay returns for all but one group. The magnitude of the causal effect differs across groups.

Keywords: temporary migration, durations, timing of event method, labour market dynamics

JEL Classification: J61, J64, C41

Suggested Citation

Bijwaard, Govert and Schluter, Christian and Wahba, Jackline, The Impact of Labour Market Dynamics on the Return-Migration of Immigrants. IZA Discussion Paper No. 5722. Available at SSRN: https://ssrn.com/abstract=1855154

Govert Bijwaard (Contact Author)

Netherlands Interdisciplinary Demographic Institute (NIDI) ( email )

P.O. Box 11650
NL-2502 AR The Hague
Netherlands
+31 70 3565224 (Phone)

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

P.O. Box 1738
3000 DR Rotterdam, NL 3062 PA
Netherlands

IZA Institute of Labor Economics

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

Christian Schluter

University of Southampton - Division of Economics ( email )

Southampton, SO17 1BJ
United Kingdom
+44 2380 59 5909 (Phone)
+44 2380 59 3858 (Fax)

HOME PAGE: www.economics.soton.ac.uk/staff/schluter/

Jackline Wahba

University of Southampton, Department of Economics ( email )

Southampton, SO171BJ
United Kingdom
+44 23 8059 3996 (Phone)

HOME PAGE: http://https://sites.google.com/site/jackiewahba/

IZA Institute of Labor Economics

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

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