Immigrants’ Wage Growth and Selective Out‐Migration

This paper examines immigrant wage growth taking selective out‐migration into account using administrative data from the Netherlands. Addressing a limitation in the previous literature, we address the potential endogeneity of immigrants’ labour supply and out‐migration decisions on their earning profiles using a correlated competing risk model. We distinguish between labour and family migrants, given their different labour market and out‐migration behaviours. Our findings show that accounting for selective labour supply is as important as accounting for selective out‐migration. Controlling only for out‐migration selectivity would underestimate immigrants’ wage growth, whilst controlling only for labour market selectivity would overestimate their wage growth. This shows that different selections are important for different types of migrants.     

Pricing response to entry and agglomeration effects

In contrast to the traditional approach that typically views entry solely as a threat, we argue that our understanding of this important phenomenon will remain incomplete until we consider the possibility that entry may also provide opportunity for incumbent firms. Drawing from agglomeration theory, which describes the benefit from colocating with competitors, we explicitly examine the combined impact of the competitive and agglomeration effects of entry using a unique dataset of Texas hotels. We find that incumbent establishments price higher when facing entrants whose agglomeration benefits are more likely to outweigh their competitive effects. This association is stronger for incumbents that have greater experience with entry. Our results bring a new perspective to the entry response literature helping clarify inconsistent empirical results. Further, we apply agglomeration theory to a new question, incumbent behavior, and demonstrate that experience appears to play an important role in recognizing situations that generate agglomeration externalities. Copyright © 2009 John Wiley & Sons, Ltd.     

Evaluating innovation networks in emerging technologies

Interorganisational innovation networks are increasingly important for innovation in emerging technology fields. The performance of such networks can have a large impact on the future development of emerging technologies. A useful framework for the evaluation of innovation networks however does not yet exist. In this paper, such a framework is developed, using elements of the social network analysis literature and the resource-based view. This framework is subsequently applied to compare two policy-driven innovation networks: 1) the Center for Translational Molecular Medicine; and 2) the BioMedical Materials program. Based on this first empirical exploration of the framework implications for management and further policy development are formulated.     

Return Versus onward Migration: Go Back or Move On?

This paper examines the impact of unemployment on out-migration by distinguishing between return and onward migration and controlling for total earnings. We use Timing-of-Events models and control for the endogeneity of total earnings, unemployment and out-migration using administrative data from the Netherlands. Our findings suggest that unemployment triggers return migration more than onward migration. When total earnings are low unemployment increases the hazard of return migration. When total earnings are high the hazard rate of onward migration for unemployed immigrants increases. Thus, these findings highlight that out-migration is affected both by unemployment and by total earnings as well as by the interaction between the two.