The Impact of Labour Market Dynamics on the Return-Migration of Immigrants
Govert Ewout Bijwaard (),
Christian Schluter () and
Jackline Wahba ()
Additional contact information Christian Schluter: DEFI, Aix-Marseille II and University of Southampton
Jackline Wahba: University of Southampton
Using administrative panel data on the entire population of new labour immigrants to The Netherlands, we estimate the causal effects of labour dynamics on their return decisions. Specifically, the roles of unemployment and re-employment spells on immigration durations are examined. The endogeneity of labour market outcomes and the return migration decision, if ignored, confounds the causal effect. This empirical challenge is addressed using the â€œtiming-of-eventsâ€ method. We estimate the model separately for distinct immigrant groups, and find that, overall, unemployment spells shorten immigration durations, while re-employment spells delay returns for all but one group. The magnitude of the causal effect differ across groups.