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Immigrants’ wage growth and selective out-migration

Immigrants’ wage growth and selective out-migration
Immigrants’ wage growth and selective out-migration
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.
migration dynamics; labour market transitions; competing risks; immigrant assimilation; income growth
0305-9049
1-30
Bijwaard, Govert
7cab5d16-ac6c-436a-8588-0d3bce1547b3
Wahba, Jackline
03ae9304-c329-40c6-9bfc-d91cfa9e7164
Bijwaard, Govert
7cab5d16-ac6c-436a-8588-0d3bce1547b3
Wahba, Jackline
03ae9304-c329-40c6-9bfc-d91cfa9e7164

Bijwaard, Govert and Wahba, Jackline (2019) Immigrants’ wage growth and selective out-migration. Oxford Bulletin of Economics and Statistics, 1-30. (doi:10.1111/obes.12295).

Record type: Article

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.

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Wages Return Selection OBES - Accepted Manuscript
Restricted to Repository staff only until 26 November 2019.
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Bijwaard et al 2019 Oxford Bulletin of Economics and Statistics - Version of Record
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More information

Accepted/In Press date: 26 November 2018
e-pub ahead of print date: 15 January 2019
Keywords: migration dynamics; labour market transitions; competing risks; immigrant assimilation; income growth

Identifiers

Local EPrints ID: 427410
URI: https://eprints.soton.ac.uk/id/eprint/427410
ISSN: 0305-9049
PURE UUID: bb1555fb-2d1a-48c6-a20a-62af7b1298fc
ORCID for Jackline Wahba: ORCID iD orcid.org/0000-0002-0002-3443

Catalogue record

Date deposited: 15 Jan 2019 17:30
Last modified: 20 Jul 2019 01:18

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