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Exact(4)
In fact, empirical results from immigrants in Germany reveal that optimal migration duration decreases in ppp.
The empirical results also suggest that optimal migration duration decreases as the ratio of home country wage rate to host country wage rate increases, which confirms the implication of the theoretical model on this issue.
When immigrants do not plan to work as wage-earners after returning to their home country, optimal migration duration decreases in purchasing power parity (regardless of the elasticity of intertemporal substitution of consumption).
A theoretical model of joint migration duration and saving decisions reveals that the optimal migration duration decreases in ppp unless the elasticity of intertemporal substitution of consumption is well above typical estimated values for this parameter.
Similar(56)
In the case that immigrants do not work as wage earners after returning to their home country, which has strong empirical relevance, optimal migration duration always decreases in ppp.
He finds evidence that migration duration may decrease if the wage differential increases.
Importantly, tighter US migration policies have an ambiguous effect on the optimal migration duration while longer distances decrease the hazard of return to their state of origin.
The above findings imply that immigrants from poorer countries may stay shorter in the host country if the impact of a higher ppp in decreasing migration duration dominates the impact of a lower wage ratio in increasing migration duration.
If β is positive, HR= exp(β > 0) > 1, then one unit increase in variable X increases the hazard by HR−1 and therefore decreases the migration duration.
According to the estimates in specification 2, a 10 percentage point increase in the wage ratio decreases the migration duration of an unmarried 30-year-old arriver in 1984 by 1.12 years, which is almost an 18percentt drop from a predicted migration duration of 6.3 years for this immigrant.
This indirect effect, which decreases optimal migration duration, is weaker for immigrants who are more willing to substitute consumption intertemporally because these immigrants already save more (due to their higher willingness to substitute consumption intertemporally); therefore, there is less room for an increase in their savings.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com