A Benefit-Cost Analysis of Foreign Workers in West-Germany, 1957?1973

Blitz, Rudolph C.

doi:10.1111/j.1467-6435.1977.tb02205.x

Cited by 17 publications

(8 citation statements)

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“…The purchasing power of the host country currency in the home country is given by r. If r > 1, the purchasing power of the host country currency is higher in the migrant's home country. 6 The choice variable in period 1 is savings s. Given the budget constraint, it fixes consumption in the first period (c 1 ) and in the second period (c E2 , c I2 ). The first order condition is given by:…”

Section: Conceptual Considerations and Estima-tion 21 A Simple Modelmentioning

confidence: 99%

Savings, Asset Holdings, and Temporary Migration

Dustmann

Mestres

2011

SSRN Journal

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Savings, Asset Holdings, and Temporary Migration *This paper analyzes savings and asset holdings of immigrants in relation to their return plans. We argue that savings and asset accumulation may be affected by return plans of immigrants. Further, the way savings and assets are held in the home-and host country may also be related to future return plans. Thus, comparing savings and assets between immigrants and natives may lead to serious underestimation when neglecting the home country component. We show that immigrants with temporary return plans place a higher proportion of their savings in the home country. In addition, both the magnitude and the share of assets and housing value accumulated in the home country are larger for immigrants who consider their migration as temporary, and lower the value of assets and property held in the host country. Finally, and conditional on observable characteristics, we find no evidence that immigrants with temporary migration plans save more than immigrants with permanent migration plans.

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Section: Conceptual Considerations and Estima-tion 21 A Simple Modelmentioning

confidence: 99%

Savings, Asset Holdings, and Temporary Migration

Dustmann

Mestres

2011

SSRN Journal

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“…In this case, the overall effect on savings is ambiguous, as it is now unclear whether an increase in savings increases the marginal utility of consumption more in the home-or the host country. Sufficient for the effect of an increase in p on savings to be positive is that the wage differential between home-and host country is larger than the 6 For simplicity we have assumed that interest rates are equal in the two countries; if interest rates were different between home and host country then this would be an additional source of differential asset accumulation. …”

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confidence: 99%

Savings, Asset Holdings, and Temporary Migration

Dustmann

Mestres

2010

Annals of Economics and Statistics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. We argue that savings and asset accumulation may be affected by return plans of immigrants. Further, the way savings and assets are held in the home-and host country may also be related to future return plans. Thus, comparing savings and assets between immigrants and natives may lead to serious underestimation when neglecting the home country component. We show that immigrants with temporary return plans place a higher proportion of their savings in the home country. In addition, both the magnitude and the share of assets and housing value accumulated in the home country are larger for immigrants who consider their migration as temporary, and lower the value of assets and property held in the host country. Finally, and conditional on observable characteristics, we find no evidence that immigrants with temporary migration plans save more than immigrants with permanent migration plans.JEL Classification: F22, D31, R21

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“…For instance, von Loeffelholz (2001) has estimated the foregone macroeconomic benefits from non‐integration of ethnic minorities at one to two percent of GDP in Germany, mostly due to high unemployment among low‐skilled migrants. This stands in contrast to early cost‐benefit analyses of the guest worker migration under the assumption of full employment (Blitz 1977). The term ‘parallel societies’ was coined by the sociologist Wilhelm Heitmeyer with respect to the integration deficits of immigrants in Germany.…”

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confidence: 66%

Integration, Social Networks and Economic Success of Immigrants: A Case Study of the Turkish Community in Berlin

Danzer¹,

Ulku²

2011

Kyklos

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SUMMARY The observation that some immigrants choose not to integrate into the host society has caused political controversies across European states. This paper hypothesizes that immigrants can exploit social networks of different scales in order to substitute for costly integration. Using a novel dataset of Turkish households in Berlin, which was specifically collected for this analysis, we investigate the determinants of integration as well as the impact of integration and networks on households' economic success. We find evidence that integration promotes income even after accounting for potential endogeneity bias. Using endogenous switching regression model, we test whether local ethnic networks can be successfully used to generate household income. In line with the view that there is a trade‐off between integration and the establishment of ethnic contacts, we find that local ethnic and familial networks increase the income of unintegrated migrants, while transnational networks decrease it. Moreover, education is more income improving for integrated than non‐integrated immigrants and remaining closely integrated within their own ethnic group is more economically advantageous for poorer households. These results provide evidence that integration is the rational strategy for better‐off immigrants while it may be too costly for poorer immigrants.

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A Benefit-Cost Analysis of Foreign Workers in West-Germany, 1957?1973

Cited by 17 publications

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Savings, Asset Holdings, and Temporary Migration

Savings, Asset Holdings, and Temporary Migration

Savings, Asset Holdings, and Temporary Migration

Integration, Social Networks and Economic Success of Immigrants: A Case Study of the Turkish Community in Berlin

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