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.
† Financial support from the NORFACE research programme on Migration in Europe – Social, Economic, Cultural and Policy Dynamics and the Economic and Social Research Council (RES‐167‐25‐0678) is gratefully acknowledged. We thank Statistics Netherlands, and Han Nicolaas in particular, for data support. We thank the participants of the 7th Annual Conference on Immigration in OECD Countries for their helpful comments.
† Financial support from the NORFACE research programme on Migration in Europe – Social, Economic, Cultural and Policy Dynamics and the Economic and Social Research Council (RES‐167‐25‐0678) is gratefully acknowledged. We thank Statistics Netherlands, and Han Nicolaas in particular, for data support. We thank the participants of the 7th Annual Conference on Immigration in OECD Countries for their helpful comments.
| Original language | English |
|---|---|
| Pages (from-to) | 1065-1094 |
| Journal | Oxford Bulletin of Economics and Statistics |
| Volume | 81 |
| Issue number | 5 |
| Early online date | 15 Jan 2019 |
| DOIs | |
| Publication status | Published - Oct 2019 |