We analyze guest-workers' expected duration of stay in Germany within an econometric model taking into account the important distinction between permanent and temporary stayers, where the expected duration of stay for the latter is differentiated in short-term, medium-term and long-term stayers....

Using information on desired and actual hours of work, we formulate a discrete choice model of constrained labor supply. Using the German Socio-Economic Panel and the microsimulation model STSM, we find that hours and participation elasticities are substantially smaller than those in the...