International Migration with Heterogeneous Agents: Theory and Evidence for Germany, 1967-2009
Herbert Brücker () and
Philipp J.H. Schroeder
Additional contact information
Philipp J.H. Schroeder: Aarhus School of Business and DIW Berlin.
Authors registered in the RePEc Author Service: Philipp J.H. Schröder
No 2011027, Norface Discussion Paper Series from Norface Research Programme on Migration, Department of Economics, University College London
Temporary migration, though empirically relevant, is often ignored in formal models. This paper proposes a migration model with heterogeneous agents and persistent cross country income differentials that features temporary migration. In equilibrium there exists a positive relation between the stock of migrants and the income differential, while the net migration ﬂow becomes zero. Consequently, existing empirical migration models, estimating net migration ﬂows, instead of stocks, may be misspeciﬁed. This suspicion appears to be conﬁrmed by our investigation of the cointegration relationships of German migration stocks and ﬂows since 1967. We ﬁnd that (i) panel-unit root tests reject the hypothesis that migration ﬂows and the explanatory variables are integrated of the same order, while migration stocks and the explanatory variables are all I(1) variables, and (ii) the hypothesis of cointegration cannot be rejected for the stock model.
Keywords: International migration; temporary migration; panel cointegration (search for similar items in EconPapers)
JEL-codes: C23 C53 F22 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int and nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed
Downloads: (external link)
Journal Article: International Migration With Heterogeneous Agents: Theory and Evidence for Germany, 1967–2009 (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:nor:wpaper:2011027
Access Statistics for this paper
More papers in Norface Discussion Paper Series from Norface Research Programme on Migration, Department of Economics, University College London Contact information at EDIRC.
Bibliographic data for series maintained by Norface Migration Administrator ().