Immigrants’ Wage Growth and Selective Out‐Migration

30 Pages Posted: 2 Jun 2020

See all articles by Govert Bijwaard

Govert Bijwaard

NIDI

Jackline Wahba

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

Date Written: October 2019

Abstract

This paper examines immigrant wage growth taking selective out‐migration into account using administrative data from the Netherlands. Addressing a limitation in the previous literature, we address the potential endogeneity of immigrants’ labour supply and out‐migration decisions on their earning profiles using a correlated competing risk model. We distinguish between labour and family migrants, given their different labour market and out‐migration behaviours. Our findings show that accounting for selective labour supply is as important as accounting for selective out‐migration. Controlling only for out‐migration selectivity would underestimate immigrants’ wage growth, whilst controlling only for labour market selectivity would overestimate their wage growth. This shows that different selections are important for different types of migrants.

Suggested Citation

Bijwaard, Govert and Wahba, Jackline, Immigrants’ Wage Growth and Selective Out‐Migration (October 2019). Oxford Bulletin of Economics and Statistics, Vol. 81, Issue 5, pp. 1065-1094, 2019, Available at SSRN: https://ssrn.com/abstract=3615212 or http://dx.doi.org/10.1111/obes.12295

Govert Bijwaard (Contact Author)

NIDI ( email )

P.O. Box 11650
NL-2502 AR The Hague
Netherlands

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

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
0
Abstract Views
70
PlumX Metrics