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Source Country Characteristics and Immigrants’ Migration Duration and Saving Decisions

Author

Listed:
  • Murat Kirdar

    (Middle East Technical University)

Abstract
This paper examines how immigrants’ migration duration and saving decisions in the host country respond to the purchasing power parity (ppp) and the wage ratio between the host and source countries. It is shown that in theory immigrants may stay longer in the host country as a result of an increase in ppp, in particular those with a high willingness to substitute consumption intertemporally. However, the empirical results from immigrants in Germany reveal that optimal migration duration decreases in ppp. Holding individual immigrant characteristics constant, immigrants from poorer source countries have shorter migration duration than immigrants from wealthier source countries. The empirical results also reveal that saving rate increases in ppp.

Suggested Citation

  • Murat Kirdar, 2010. "Source Country Characteristics and Immigrants’ Migration Duration and Saving Decisions," Koç University-TUSIAD Economic Research Forum Working Papers 1010, Koc University-TUSIAD Economic Research Forum.
    • Handle: RePEc:koc:wpaper:1010
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    File URL: http://eaf.ku.edu.tr/sites/eaf.ku.edu.tr/files/erf_wp_1010.pdf
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    References listed on IDEAS

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    Cited by:

    1. Abarcar, Paolo, 2017. "The return motivations of legal permanent migrants: Evidence from exchange rate shocks and immigrants in Australia," Journal of Economic Behavior & Organization, Elsevier, vol. 144(C), pages 62-77.
    2. Sylvie Démurger & Hui Xu, 2011. "Left-Behind Children and Return Decisions of Rural Migrants in China," Post-Print halshs-00625636, HAL.
    3. Djajić, Slobodan & Vinogradova, Alexandra, 2015. "Overshooting the Savings Target: Temporary Migration, Investment in Housing and Development," World Development, Elsevier, vol. 65(C), pages 110-121.
    4. Alexandra Vinogradova, 2016. "Illegal immigration, deportation policy, and the optimal timing of return," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(3), pages 781-816, July.
    5. Hera Susanti & Arie Damayanti, 2015. "Determinants of Internal Migration in Indonesia," Working Papers in Economics and Business 201505, Faculty of Economics and Business, University of Indonesia, revised Oct 2015.
    6. Slobodan Djajić, 2013. "Some Essentials Of A Workable Guest‐Worker Program," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 54(2), pages 739-766, May.
    7. Slobodan Djajić, 2009. "On the welfare implications of temporary and permanent immigration," Bank i Kredyt, Narodowy Bank Polski, vol. 40(5), pages 49-60.

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    More about this item

    Keywords

    International Migration; Immigrant Workers;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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