Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/36797 
Year of Publication: 
2010
Series/Report no.: 
IZA Discussion Papers No. 4899
Publisher: 
Institute for the Study of Labor (IZA), Bonn
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.
Subjects: 
International migration
immigrant workers
JEL: 
F22
J61
Document Type: 
Working Paper

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