Journal of Human Resources
Volume 52, Issue 2, 2017, Pages 351-373

Macroeconomic Conditions in Home Countries and the Well-Being of Migrants (Article)

Akay A. , Bargain O.* , Zimmermann K.F.
  • a University of Gothenburg, IZA, LISER, Sweden
  • b GREQAM Château Lafarge, Route des Milles, Les Milles, 13290, France
  • c Princeton University, UNU-MERIT, United States

Abstract

This paper examines whether the subjective well-being of migrants is responsive to fluctuations in macroeconomic conditions in their country of origin. Using the German Socio-Economic Panel for the years 1984 to 2009 and macroeconomic variables for 24 countries of origin, we exploit countryyear variation for identification of the effect and panel data to control for migrants' observed and unobserved characteristics. We find strong evidence that migrants' well-being responds negatively to an increase in the GDPof their home country. That is, migrants seem to regard home countries as natural comparators, which grounds the idea of relative deprivation underlying the decision to migrate. The effect declines with years-since-migration and with the degree of assimilation in Germany. © 2017 by the Board of Regents of the University ofWisconsin System.

Author Keywords

[No Keywords available]

Index Keywords

Germany immigrant macroeconomics quality of life socioeconomic conditions

Link
https://www.scopus.com/inward/record.uri?eid=2-s2.0-85018260841&doi=10.3368%2fjhr.52.2.0115-6900R1&partnerID=40&md5=571d40cb784e6177ce557e2cff28f29a

DOI: 10.3368/jhr.52.2.0115-6900R1
ISSN: 0022166X
Cited by: 10
Original Language: English