The savings behavior of migrant workers

Kumcu, M.Ercan

doi:10.1016/0304-3878(89)90004-7

Cited by 32 publications

(19 citation statements)

References 14 publications

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“…We would expect high saving rates in the host country when the goal of immigration is to accumulate savings. In fact, Kumcu (1989) reports, based on a survey of Turkish immigrants in Germany in 1985, that the marginal propensity to save at the mean household income ranges from 0.24 to 0.38 for households with an urban origin 4 . Accordingly, in this article return migration is rationalized by the higher purchasing power of accumulated savings in the home country.…”

Section: Background and Relevant Literaturementioning

confidence: 99%

Estimating the Impact of Immigrants on the Host Country Social Security System When Return Migration Is an Endogenous Choice*

Kïrdar

2012

Int Economic Review

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This article estimates immigrants’ fiscal impact on the German pension insurance and unemployment insurance systems when return migration is an endogenous choice. For this purpose, it develops a dynamic stochastic model of joint return migration and saving decisions and estimates it using longitudinal data on immigrants from five countries. The results indicate that exogenous return migration—which has been the practice of the literature so far—underestimates the state coffers’ net gain substantially; e.g., the unemployment insurance system’s net gain from Turks arriving after age 30 falls by an amount that is roughly equal to their annual earnings at arrival.

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Section: Background and Relevant Literaturementioning

confidence: 99%

Estimating the Impact of Immigrants on the Host Country Social Security System When Return Migration Is an Endogenous Choice*

Kïrdar

2012

Int Economic Review

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“…The empirical context is appropriate for testing the hypotheses derived from this theoretical model because the empirical literature has provided ample evidence on the savings accumulation motivation for immigrants originating from these Mediterranean countries in Germany. Paine (1974) and Kumcu (1989) report saving rates in excess of 35 percent for Turkish immigrants in their first few years in Germany.…”

Section: Introductionmentioning

confidence: 99%

Source country characteristics and immigrants’ optimal migration duration decision

Kïrdar

2013

IZA J Migration

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This paper examines how immigrants' optimal migration duration in the host country responds to the purchasing power parity (ppp) and relative wages between the host and source countries. 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. In fact, empirical results from immigrants in Germany reveal that optimal migration duration decreases in ppp. The empirical findings also imply that-holding individual immigrant characteristics constant-immigrants from poorer source countries have shorter predicted migration duration than immigrants from wealthier source countries. In addition, this paper shows that longitudinal data on intentions can be informative by examining how observed event realizations lead to revisions to intentions. JEL classification codes: F22, J61

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“…As the annual growth rate of the Turkish economy increased after 1985, public saving began to worsen and private saving recovered. Public saving gap 1 Among the other empirical studies Rittenberg (1988) investigated the financial liberalization and savings in Turkey and Kumcu (1989) analysed the savings behaviour of migrant workers: Turkish workers in Germany.…”

Section: Policy Environment and Saving Behaviour In Turkeymentioning

confidence: 99%

Determinants of private savings behaviour in Turkey

2003

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This study investigates the effects on private saving rates of a number of policy and non-policy variables. The analysis covers the period 1968-1994. The empirical private saving model for Turkey is estimated. The findings support the hypothesis that private saving rates have strong inertia. The evidence indicates that government saving does not tend to crowd out private savings and the Ricardian equivalence does not hold strictly. Income level has a positive impact on private saving rate, and growth rate of income is not statistically significant. From a policy point of view, financial depth and development measures in Turkey suggest that countries with deeper financial systems tend to have higher private saving rates. Private credit and real interest rates try to capture the severity of the borrowing constraints and the degree of financial repression for Turkey. Moreover, the negative impact of life expectancy rate lends support to the life-cycle hypothesis. The precautionary motive for saving is supported by the findings that inflation captures the degree of macroeconomic volatility and has a positive impact on private saving in Turkey.

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The savings behavior of migrant workers

Cited by 32 publications

References 14 publications

Estimating the Impact of Immigrants on the Host Country Social Security System When Return Migration Is an Endogenous Choice*

Estimating the Impact of Immigrants on the Host Country Social Security System When Return Migration Is an Endogenous Choice*

Source country characteristics and immigrants’ optimal migration duration decision

Determinants of private savings behaviour in Turkey

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