Migrants' Savings, Purchasing Power Parity, and the Optimal Duration of Migration

Stark, Oded; Helmenstein, Christian and Yegorov, Yuri (June 1997) Migrants' Savings, Purchasing Power Parity, and the Optimal Duration of Migration. Closed Series > Working Paper Series > IHS Economics Series 44

[img]
Preview
Text
es-44.pdf

Download (2MB) | Preview

Abstract or Table of Contents

Abstract: If some of the returns to migration accrue from return migration, the optimal duration of migration may be shorter than the feasible duration of migration. We develop a model that provides and highlights conditions under which return migration takes place even though a reversal of the inter-country wage differential does not occur. In particular, we consider the higher purchasing power of savings (generated from work abroad) at home than abroad as a motive for return migration. Inter alia, our model produces a negative relationship between the optimal duration of migration and the purchasing power differential and in some (but not all) cases, a negative relationship between the optimal duration of migration and the wage abroad. In addition, and contrary to our prior anticipation, our utility maximization analysis suggests that East-West migration will tend to be temporary while inter-European Community (or intra-West European) migration will likely be permanent.;

Item Type: IHS Series
Keywords: 'Return Migration' 'Migrants' Savings' 'Purchasing Power Differentials'
Classification Codes (e.g. JEL): F22, J61
Status: Published
Date Deposited: 26 Sep 2014 10:36
Last Modified: 26 Sep 2019 16:47
URI: https://irihs.ihs.ac.at/id/eprint/984

Actions (login required)

View Item View Item