Labour Market Status and Migration Dynamics

Govert Bijwaard

No 4530, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In this empirical paper we assess how labour market transitions and out- and repeated migration of immigrants are interrelated. We estimate a multi-state multiple spell competing risks model with four states: employed, unemployed receiving benefits, out-of-the-labour market (no benefits) and abroad. For the analysis we use data on recent labour immigrants to The Netherlands, which implies that all migrants are (self)-employed at the time of arrival. We find that many migrants leave the country after a period of no-income. Employment characteristics and the country of origin play an important role in explaining the dynamics. Microsimulations of synthetic cohorts reveal that many migrants experience unemployment spells, but ten years after arrival only a few are unemployed. Scenarios based on microsimulation indicate that the Credit Crunch will not only increase the unemployment among migrants but also departure from the country. Scenarios also indicate that an increase in the number of migrants from the EU accession countries will lead to higher labour market and migration dynamics. Finally, based on microsimulation we do not expect that the recent simplification of the entry of high income migrants will have a lasting effect, as many of those migrants leave fast.

Keywords: migration dynamics; labour market transitions; competing risks; immigrant assimilation (search for similar items in EconPapers)
JEL-codes: C41 F22 J61 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2009-10
New Economics Papers: this item is included in nep-lab, nep-mic and nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Working Paper: Labour Market Status and Migration Dynamics (2009)
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