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Find that intensities of return migration are U-shaped with respect to migrant income. The lowest-income group has the highest probability of return. We estimate the impact of the income earned in the host country on return migration of labor migrants from developing countries. We use a three-state correlated competing risks model to account for the strong dependence of labor market status and the income earned. Our analysis is based on administrative panel data of recent labor immigrants from developing countries to The Netherlands.
The empirical results show that intensities of return migration are U-shaped with respect to migrants’ income, implying a higher intensity in low- and high- income groups. Indeed, the lowest-income group has the highest probability of return. We also find that ignoring the interdependence of labor market status and the income earned leads to an overestimating the income effect on departure. Check if you have access through your login credentials or your institution. We thank Statistics Netherlands, Han Nicolaas in particular, for data support. Foxit PDF reader for Windows, Mac, and more. A speedy PDF reader alternative to Adobe Reader.
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