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Returning to the Question of a Wage Premium for Returning Migrants

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  • Barrett, Alan
  • Goggin, Jean

Abstract

Using 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 Info

Paper provided by Economic and Social Research Institute (ESRI) in its series Papers with number WP337.

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Date of creation: Feb 2010
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Handle: RePEc:esr:wpaper:wp337

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Keywords: Ireland/US;

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Cited by:
  1. Dustmann, Christian & Fadlon, Itzhak & Weiss, Yoram, 2011. "Return migration, human capital accumulation and the brain drain," Journal of Development Economics, Elsevier, vol. 95(1), pages 58-67, May.
  2. Barrett, Alan & Mosca, Irene, 2012. "Exploring the Early-life Causes and Later-life Consequences of Migration through a Longitudinal Study on Ageing," IZA Discussion Papers 6878, Institute for the Study of Labor (IZA).
  3. Barrett, Alan & Mosca, Irene, 2012. "The Psychic Costs of Migration: Evidence from Irish Return Migrants," IZA Discussion Papers 6324, Institute for the Study of Labor (IZA).
  4. J. William Ambrosini & Karin Mayr & Giovanni Peri & Dragos Radu, 2011. "The Selection of Migrants and Returnees: Evidence from Romania and Implications," NBER Working Papers 16912, National Bureau of Economic Research, Inc.
  5. Renata Ivanova & Byeongju Jeong, 2011. "Why Don't Migrants with Secondary Education Return?," CERGE-EI Working Papers wp449, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
  6. William Ambrosini & Karin Mayr & Giovanni Peri & Dragos Radu, 2012. "The Selection of Migrants and Returnees in Romania: Evidence and long-run implications," Working Papers 1216, University of California, Davis, Department of Economics.
  7. 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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