In this paper we discuss forms of migration that are non-permanent. We focus on
temporary migrations where the decision to return is taken by the immigrant. These
migrations are likely to be frequent, and we provide some evidence for the UK. We
then develop a simple model which rationalizes the decision of a migrant to return to
his home country, despite a persistently higher wage in the host country. We
consider three motives for a temporary migration: Differences in relative prices in
host- and home country, complementarities between consumption and the location
where consumption takes place, and the possibility of accumulating human capital
abroad which enhances the immigrant's earnings potential back home. For the last
return motive, we discuss extensions which allow for immigrant heterogeneity, and
develop implications for selective in- and out- migration
