Immigrants’ Wage Growth and Selective Out-Migration

G.E. Bijwaard, J. Wahba

Research output: Working paper/discussion paperWorking paper/Discussion paperScientific

86 Downloads (Pure)

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’ 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’ wage growth.
Original languageEnglish
Place of PublicationBonn
PublisherInstitute for the Study of Labor (IZA)
Pages1-28
Publication statusPublished - 2014

Publication series

NameIZA Discussion Paper
No.8627

Keywords

  • migration dynamics
  • Labor market transitions
  • Competing risks
  • Immigrant assimilation
  • income growth

Fingerprint Dive into the research topics of 'Immigrants’ Wage Growth and Selective Out-Migration'. Together they form a unique fingerprint.

Cite this