An implementation of the theory of labor migration under asymmetric information shows that return migration arises from the reinstatement of informational symmetry that induces low-skill workers, who are no longer pooled with high-skill workers, to return. When workers in an occupation constitute more than two skill levels, say four (without loss of generality), the following patterns emerge: migration is sequential, that is, it proceeds in waves; each wave breaks into workers who return and workers who stay; within waves the returning migrants are the low-skill workers; and the average skill level of migrants is rising in the order of their wave. Copyright 1995 by The editors of the Scandinavian Journal of Economics.
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Ira N. Gang & Catherine Y. Co & Myeong-Su Yun, 1999.
"Returns to Returning,"
Departmental Working Papers
199813, Rutgers University, Department of Economics.
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