To Stay or Not to Stay? Out‐Migration of Immigrants from Denmark

A major portion of migration flows are temporary, ending with return migration to the home country or migration to a third country. However, the propensity to return differs according to migrants' countries of origin. This paper presents a discussion of the theoretical approaches to return migration and a brief survey of the actual flows in Denmark. We then present a panel data set of immigrants to Denmark covering the years 1986 ‐ 1995 and run a number of logit models where return migration is related to individual background factors. Our research shows significant differences in decisions of return depending on country of origin, age at entry, education, and family ties. One of the most important determinants is found to be a migrant's success, or lack thereof, regarding labour market integration. This research suggests that policy instruments such as education, training, and temporary wage subsidies could play an important role in controlling the interaction between immigration and labour market forces.