TY  - RPRT
        AU  - Bijwaard, Govert
AU  - Wahba, Jackline
        TI  - Immigrants' Wage Growth and Selective Out-Migration
        PY  - 2014/Nov/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 8627
        UR  - https://www.iza.org/publications/dp8627
        AB  - This paper examines immigrant wage growth taking into account selective out-migration using administrative data from the Netherlands. We also take into account the potential endogeneity of the immigrants' labor supply and their out-migration decisions on their earning profiles using a correlated competing risk model, but we also use standard estimations as done in previous literature. We distinguish between two types of migrants: labor and family migrants given their different labor market and out-migration behavior. We find that simple models lead to biased estimates of the wage growth of immigrants. Controlling for the selective out-migration and endogeneity of labor supply, we find that labor out-migrants are positively selected but family out-migrants are negatively selected. Furthermore, the findings underscore the importance of taking into account the endogeneity of labor supply and out-migration when estimating immigrants' wage growth.
        KW  - competing risks
KW  - labor market transitions
KW  - migration dynamics
KW  - immigrant assimilation
KW  - income growth
        ER  -