EconPapers    
Economics at your fingertips  
 

Purchasing-Power-Parity and the Saving Behavior of Temporary Migrants

Alpaslan Akay (), Alexandra Brausmann, Slobodan Djajic () and Murat Kırdar ()
Additional contact information
Alexandra Brausmann: 3Center of Economic Research, ETH
Slobodan Djajic: The Graduate Institute, Geneva

Authors registered in the RePEc Author Service: Alexandra Brausmann Vinogradova

No 1916, CReAM Discussion Paper Series from Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London

Abstract: How does the saving behavior of immigrants respond to changes in purchasing power parity between the source and host countries? We examine this question by building a theoretical model of joint return-migration and saving decisions of temporary migrants and then test its implications by using data from the German Socioeconomic Panel on immigrants from 92 source countries. As implied by our theoretical model, we find that the saving rate increases in the price of host- in terms of source-country currency, but decreases in the source-country price level and that the absolute magnitude of both relationships increases as the time to retirement becomes shorter. At the median level of years to retirement, the absolute values of the elasticity of savings with respect to the nominal exchange rate and with respect to the source-country price level are both close to unity. Moreover, as we gradually restrict the sample to individuals with stronger return intentions, the estimated magnitudes become larger and their stastical significance higher.

Keywords: Migrants' Savings; Return Migration; Exchange Rates; Prices; PPP (search for similar items in EconPapers)
JEL-codes: F22 J61 (search for similar items in EconPapers)
Date: 2019-10
New Economics Papers: this item is included in nep-eur and nep-opm
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.cream-migration.org/publ_uploads/CDP_16_19.pdf (application/pdf)

Related works:
Working Paper: Purchasing-Power-Parity and the Saving Behavior of Temporary Migrants (2018) Downloads
Working Paper: Purchasing-Power-Parity and the Saving Behavior of Temporary Migrants (2018) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:crm:wpaper:1916

Access Statistics for this paper

More papers in CReAM Discussion Paper Series from Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London Contact information at EDIRC.
Bibliographic data for series maintained by CReAM Administrator () and Thomas Cornelissen ().

 
Page updated 2021-04-08
Handle: RePEc:crm:wpaper:1916