Immigrants' Wage Growth and Selective Out-Migration
Bijwaard, Govert E.
MetadataShow full item record
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.
CitationBijwaard, G.E. and Wahba, J. (2019), Immigrants’ Wage Growth and Selective Out‐Migration. Oxf Bull Econ Stat, 81: 1065-1094. https://doi.org/10.1111/obes.12295
Rights holder© 2019 The Authors. Oxford Bulletin of Economics and Statistics published by Oxford University and John Wiley & Sons Ltd
- Livelihoods