- Journal Article
Rights / licenseIn Copyright - Non-Commercial Use Permitted
Savings of guest workers as well as of undocumented migrants represent important inflows of foreign exchange for some developing countries. This paper compares the saving behavior of these two types of migrants, assuming that the former are authorized to work abroad for a specific period of time, while the latter can stay until apprehended and deported by the immigration authorities. Due to the risk of deportation, the saving rate of an illegal immigrant is found to be initially above that of a documented migrant. This precautionary saving phenomenon is, however, short-lived. A key finding of the paper is that the total repatriated assets of an illegal migrant are always lower than those of a documented worker, provided that their duration of stay abroad is identical. This is because the undocumented migrant’s saving rate falls over time as her expected lifetime earnings are adjusted upwards every day that she avoids apprehension. Show more
Journal / seriesJournal of Population Economics
Pages / Article No.
SubjectIllegal immigration; Saving behavior; Uncertainty
Organisational unit03635 - Bretschger, Lucas / Bretschger, Lucas
NotesIt was possible to publish this article open access thanks to a Swiss National Licence with the publisher.
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