Arbeitspapier

A Joint Hazard-Longitudinal Model of the Timing of Migration, Immigrant Quality, and Labor Market Assimilation

This paper develops and estimates a joint hazard-longitudinal (JHL) model of the timing of migration and labor market assimilation – two processes that have been assumed to be independent in the existing literature. The JHL model accounts for the endogenous age of entry in estimating the returns to years since migration by allowing cross-equation correlations of random intercepts with individual rates of wage assimilation. Commonly ignored sample selection issues due to non-random survey attrition and missing wages are also addressed. Using German household panel surveys from 1984 to 2014 and home country-level data from 1961, we find large upward bias in the OLS-estimated average rate of wage assimilation. Our estimates suggest that immigrants with lower unobserved skills and with a higher unobserved propensity to migrate early have a faster assimilation rate.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 10887

Classification
Wirtschaft
Human Capital; Skills; Occupational Choice; Labor Productivity
Wage Level and Structure; Wage Differentials
Geographic Labor Mobility; Immigrant Workers
Economic History: Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy: General, International, or Comparative
Duration Analysis; Optimal Timing Strategies
Subject
migration
joint hazard-longitudinal model
mixed effects
random slope
individual-specific wage assimilation
unobserved skills
survival analysis
timing of migration
maximum likelihood
selection due to endogenous entry
Germany

Event
Geistige Schöpfung
(who)
Jain, Apoorva
Sabirianova Peter, Klara
Event
Veröffentlichung
(who)
Institute of Labor Economics (IZA)
(where)
Bonn
(when)
2017

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Jain, Apoorva
  • Sabirianova Peter, Klara
  • Institute of Labor Economics (IZA)

Time of origin

  • 2017

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