Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/106562
Authors: 
Bijwaard, Govert
Wahba, Jackline
Year of Publication: 
2014
Series/Report no.: 
IZA Discussion Papers 8627
Abstract: 
This paper examines immigrant wage growth taking into account selective out-migration using administrative data from the Netherlands. We also take into account the potential endogeneity of the immigrants' labor supply and their out-migration decisions on their earning profiles using a correlated competing risk model, but we also use standard estimations as done in previous literature. We distinguish between two types of migrants: labor and family migrants given their different labor market and out-migration behavior. We find that simple models lead to biased estimates of the wage growth of immigrants. Controlling for the selective out-migration and endogeneity of labor supply, we find that labor out-migrants are positively selected but family out-migrants are negatively selected. Furthermore, the findings underscore the importance of taking into account the endogeneity of labor supply and out-migration when estimating immigrants' wage growth.
Subjects: 
migration dynamics
labor market transitions
competing risks
immigrant assimilation
income growth
JEL: 
F22
J61
C41
Document Type: 
Working Paper

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