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Returns to Migration, Education, and Externalities in the European Union

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  • Andrés Rodríguez-Pose

    (London School of Economics)

  • Vassilis Tselios

    (University of Newcastle upon Tyne, and Spatial Economics Research Centre (SERC), London School of Economics)

Abstract

Relatively little attention has been paid to the role that externalities play in determining the pecuniary returns to migration. This paper addresses this gap, using microeconomic data for more than 100,000 individuals living in the European Union (EU) for the period 1994-2001 in order to analyse whether the individual economic returns to education vary between migrants and nonmigrants and whether any observed differences in earnings between migrants and locals are affected by household and/or geographical (regional and interregional) externalities. The results point out that while education is a fundamental determinant of earnings., European labour markets – contrary to expectations – do not discriminate in the returns to education between migrants and non-migrants. The paper also finds that household, regional, and interregional externalities influence the economic returns to education, but that they do so in a similar way for local, intranational, and supra-national migrants. The results are robust to the introduction of a large number of individual, household, and regional controls.

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Bibliographic Info

Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2010.25.

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Date of creation: Feb 2010
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Handle: RePEc:fem:femwpa:2010.25

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Keywords: Individual Earnings; Migration; Educational Attainment; Externalities; Household; Regions; Europe;

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  1. Dostie, Benoit & Léger, Pierre Thomas, 2006. "Self-Selection in Migration and Returns to Unobservable Skills," IZA Discussion Papers 1942, Institute for the Study of Labor (IZA).
  2. Benoit Dostie & Pierre Léger, 2009. "Self-selection in migration and returns to unobservables," Journal of Population Economics, Springer, vol. 22(4), pages 1005-1024, October.
  3. Ana Ferrer & W. Craig Riddell, 2008. "Education, credentials, and immigrant earnings," Canadian Journal of Economics, Canadian Economics Association, vol. 41(1), pages 186-216, February.
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Cited by:
  1. Simona Iammarino & Elisabetta Marinelli, 2012. "Education-Job (Mis)Matching And Interregional Migration: Italian University Graduates’ Transition To Work," Working Papers 8, Birkbeck Centre for Innovation Management Research, revised Sep 2012.
  2. Rodríguez-Pose, Andrés & Tselios, Vassilis, 2011. "Welfare regimes and the incentives to work and get educated," CEPR Discussion Papers 8187, C.E.P.R. Discussion Papers.
  3. Ketterer, Tobias & Rodríguez-Pose, Andrés, 2012. "Do Local Amenities Affect the Appeal of Regions in Europe for Migrants?," CEPR Discussion Papers 8964, C.E.P.R. Discussion Papers.
  4. Andrés Rodríguez-Pose, 2010. "Economists as geographers and geographers as something else: On the changing conception of distance in geography and economics," Working Papers 2010-22, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
  5. Andrés Rodríguez-Pose & Tobias Ketterer, 2011. "Do we follow the money? The drivers of migration across regions in the EU," ERSA conference papers ersa11p191, European Regional Science Association.

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