Immigrant Parents and Children: An Analysis of Decisions Related to Return Migration

It is not unusual for immigrants to leave the host country and resettle permanently in their country of origin. This paper examines the interaction among some of the key factors that influence the return decision of immigrant households. These include purely economic variables such as wages of the two countries and the costs and benefits of accumulating country-specific human capital, but also subjective factors such as the intensity of the locational preferences of immigrant parents and children and of their desire to remain together in a single location. The analysis is conducted under alternative assumptions with respect to the role of parents and children in the household's decision-making process.