The temporary and repetitive character of contemporary labor migration is explained by assuming that immigrants have a preference for location. A life-cycle model of immigrant behavior is developed to determine net lifetime income, total time allocated to home-country and foreign-country residence, and the number of migratory trips. Because of income effects, home wages and foreign wages are not symmetric in their effect on the location of work effort. It is also shown that changes in travelling costs have predictable consequences for the number of border crossings, but not for the total time spent in the foreign labor market.
ASJC Scopus subject areas
- Economics and Econometrics