An Economic Analysis of Return Migration

Christian Dustmann

Discussion Papers from University College London, Department of Economics

Abstract: This paper develops a model which rationalizes the decision of a migrant to return to his home country, despite a persistent higher wage in the host country, and provides a careful analysis of the optimal duration in the host country. Three motives for a temporary migration are provided: Differences in relative prices in host- and home country, the possibility of accumulating human capital abroad which is only earnings-effective back home, and complementaries between consumption and the location where consumption takes place. The optimal duration in the host country is then investigated, and the analysis produces some surprising and unexpected results.

Keywords: Life cycle models; international migration. (search for similar items in EconPapers)
JEL-codes: D9 F22 (search for similar items in EconPapers)
Pages: 24 pages
Date: 1996-01
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:wuk:ucloec:9602

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