Returning to the Question of a Wage Premium for Returning Migrants
AbstractUsing data from a large-scale survey of employees in Ireland, we estimate the extent to which people who have emigrated from Ireland and returned earn more relative to comparable people who have never lived abroad. In so doing, we are testing the hypothesis that migration can be part of a process of human capital formation. We find through OLS estimation that returners earn 7 percent more than comparable stayers. We test for the presence of self-selection bias in this estimate but the tests suggest that the premium is related to returner status. The premium holds for both genders, is higher for people with post-graduate degrees and for people who migrated beyond the EU to the US, Canada, Australia and New Zealand. The results show how emigration can be positive for a source country when viewed in a longer term context.
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Bibliographic InfoPaper provided by Economic and Social Research Institute (ESRI) in its series Papers with number WP337.
Date of creation: Feb 2010
Date of revision:
Other versions of this item:
- Alan Barrett & Jean Goggin, 2010. "Returning to the Question of a Wage Premium for Returning Migrants," National Institute Economic Review, National Institute of Economic and Social Research, vol. 213(1), pages R43-R51, July.
- Barrett, Alan & Goggin, Jean, 2010. "Returning to the Question of a Wage Premium for Returning Migrants," IZA Discussion Papers 4736, Institute for the Study of Labor (IZA).
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-04-17 (All new papers)
- NEP-LAB-2010-04-17 (Labour Economics)
- NEP-MIG-2010-04-17 (Economics of Human Migration)
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- Dustmann, Christian & Fadlon, Itzhak & Weiss, Yoram, 2011.
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- William Ambrosini & Karin Mayr & Giovanni Peri & Dragos Radu, 2012.
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- Ambrosini, J. William & Mayr, Karin & Peri, Giovanni & Radu, Dragos, 2012. "The Selection of Migrants and Returnees in Romania: Evidence and Long-Run Implications," IZA Discussion Papers 6664, Institute for the Study of Labor (IZA).
- Aguilar Esteva, Arturo Alberto, 2013. "Stayers and Returners: Educational Self-Selection among U.S. Immigrants and Returning Migrants," IZA Discussion Papers 7222, Institute for the Study of Labor (IZA).
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