Jacek Barszczewski (Barcelona School of Economics, UAB)

Location Choice, Marriage and Immigrant-Native Wage Gap

Abstract

Despite a growing literature on the effects of migration policies, little we know about how they affect the immigrant-native wage gap by shifting marriage patterns. In this study, I investigate how the change in marriage patterns caused by the shift in the spatial distribution of immigrants affects their labour outcomes. To quantify potential effects and conduct relevant policy experiments, I estimate using German data a three-stage model. In the model, agents first decide about their region of residence. Then they take part in the local marriage market. Finally, married couples and singles choose an optimal level of consumption and labour supply. The structure of the model captures a trade-off faced by immigrants between satisfying their tastes for similarity and potential economic gains. It also relates immigrants’ marriage market opportunities to their location choices. The model enables to quantify if and to which extent policymakers can narrow the immigrant-native wage gap via intermarriages by adjusting immigrants location in the host country.

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