Economic Preferences and the Self-selection of Immigrants

Abstract

Classical theories hypothesize individual economic preferences, including preferences toward risk, time, and trust, as determinants for migration intention. In the paper, we combine data from the German Socio-Economic Panel, European Social Survey, and World Values Survey to investigate how immigrants to Germany are self-selected from the origin population based on their preferences. We find a higher migration propensity among individuals who are more altruistic, patient, and trusting, conditional on age, gender, education, and a series of origin country’s economic and political factors. However, individuals are positively selected on risk appetite in low-risk countries but adversely selected in high-risk countries. The degree of selectivity regarding preferences is also heterogeneous across demographics and origin-country characteristics.