@techreport{43e576d4a1bd4813b11d62573e113f5c,
title = "Immigrants{\textquoteright} Wage Growth and Selective Out-Migration",
abstract = "This paper examines immigrant wage growth taking into account selective out-migration using administrative data from the Netherlands. We also take into account the potential endogeneity of the immigrants{\textquoteright} labor supply and their out-migration decisions on their earning profiles using a correlated competing risk model, but we also use standard estimations as done in previous literature. We distinguish between two types of migrants: labor and family migrants given their different labor market and out-migration behavior. We find that simple models lead to biased estimates of the wage growth of immigrants. Controlling for the selective out-migration and endogeneity of labor supply, we find that labor out-migrants are positively selected but family out-migrants are negatively selected. Furthermore, the findings underscore the importance of taking into account the endogeneity of labor supply and outmigration when estimating immigrants{\textquoteright} wage growth.",
keywords = "migration dynamics, Labor market transitions, Competing risks, Immigrant assimilation, income growth",
author = "G.E. Bijwaard and J. Wahba",
year = "2014",
language = "English",
series = "IZA Discussion Paper",
publisher = "Institute for the Study of Labor (IZA)",
number = "8627",
pages = "1--28",
type = "WorkingPaper",
institution = "Institute for the Study of Labor (IZA)",
}