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The Working Hours of Immigrants in Germany: Temporary versus Permanent

Author

Listed:
  • Kahanec, Martin

    (Central European University)

  • Shields, Michael P.

    (Central Michigan University)

Abstract
Migration is often viewed as an investment decision. Temporary migrants can be expected to invest less in accumulating human capital specific to the host country. Instead, they work more hours in order to accumulate savings and invest in financial capital that can be transferred back to their country of origin upon return. In this paper, using German panel data, we explore how temporary migrants differ from permanent migrants in their labor supply decisions and behavior. Upon correcting for endogeneity bias, temporary migrants are found to work more hours than permanent ones. This result supports the human capital theory and a household production model of migration where migrants may be temporary by choice and not because of legal restrictions or even a bad experience in the labor market.

Suggested Citation

  • Kahanec, Martin & Shields, Michael P., 2010. "The Working Hours of Immigrants in Germany: Temporary versus Permanent," IZA Discussion Papers 4735, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp4735
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    References listed on IDEAS

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    2. Amelie F. Constant & Rowan Roberts & Klaus F. Zimmermann, 2009. "Ethnic Identity and Immigrant Homeownership," Urban Studies, Urban Studies Journal Limited, vol. 46(9), pages 1879-1898, August.
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    7. István Kónya, 2007. "Optimal Immigration and Cultural Assimilation," Journal of Labor Economics, University of Chicago Press, vol. 25(2), pages 367-391.
    8. Schultz, Theodore W, 1975. "The Value of the Ability to Deal with Disequilibria," Journal of Economic Literature, American Economic Association, vol. 13(3), pages 827-846, September.
    9. Martin Kahanec & Klaus F. Zimmermann (ed.), 2010. "EU Labor Markets After Post-Enlargement Migration," Springer Books, Springer, number 978-3-642-02242-5, December.
    10. Bellemare, Charles, 2007. "A life-cycle model of outmigration and economic assimilation of immigrants in Germany," European Economic Review, Elsevier, vol. 51(3), pages 553-576, April.
    11. Dustmann, Christian, 2000. "Temporary Migration and Economic Assimilation," IZA Discussion Papers 186, Institute of Labor Economics (IZA).
    12. Zimmermann, Klaus F. (ed.), 2005. "European Migration: What Do We Know?," OUP Catalogue, Oxford University Press, number 9780199257355.
    13. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October.
    14. Kahanec, Martin & Zaiceva, Anzelika & Zimmermann, Klaus F., 2009. "Lessons from Migration after EU Enlargement," IZA Discussion Papers 4230, Institute of Labor Economics (IZA).
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    Cited by:

    1. Peter Kuhn & Kailing Shen, 2015. "Do employers prefer migrant workers? Evidence from a Chinese job board," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-31, December.
    2. Pille Motsmees & Jaan Masso & Raul Eamets, 2013. "The Effect of Migration Experience on Occupational Mobility in Estonia," Discussion Papers 14, Central European Labour Studies Institute (CELSI).
    3. Michael Fertig & Martin Kahanec, 2013. "Mobility in an enlarging European Union: Projections of potential flows from EU's eastern neighbors and Croatia," Discussion Papers 18, Central European Labour Studies Institute (CELSI).
    4. Kahanec, Martin, 2012. "Skilled Labor Flows: Lessons from the European Union," IZA Research Reports 49, Institute of Labor Economics (IZA).
    5. Irene Ferrari, 2020. "The nativity wealth gap in Europe: a matching approach," Journal of Population Economics, Springer;European Society for Population Economics, vol. 33(1), pages 33-77, January.
    6. Michael Fertig & Martin Kahanec, 2015. "Projections of potential flows to the enlarging EU from Ukraine, Croatia and other Eastern neighbors," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-27, December.
    7. Martin Kahanec, 2015. "Labour market impacts of post-enlargement migration on hosts and stayers in EU labour markets," Transfer: European Review of Labour and Research, , vol. 21(3), pages 359-372, August.
    8. Renate Ortlieb & Julian Winterheller, 2020. "Behind Migrant and Non‐Migrant Worktime Inequality in Europe: Institutional and Cultural Factors Explaining Differences," British Journal of Industrial Relations, London School of Economics, vol. 58(4), pages 785-815, December.
    9. Guzi, Martin & Kahanec, Martin, 2015. "Socioeconomic Cleavages between Workers from New Member States and Host-country Labour Forces in the EU during the Great Recession," MPRA Paper 74978, University Library of Munich, Germany.

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    More about this item

    Keywords

    temporary migrants; migration; Germany; labor supply;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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