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 Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4736.
Length: 22 pages
Date of creation: Feb 2010
Date of revision:
Publication status: published in: National Institute Economic Review, 2010, 213 (1), R43-R51
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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," Papers WP337, Economic and Social Research Institute (ESRI).
- 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-2010-02-20 (All new papers)
- NEP-HRM-2010-02-20 (Human Capital & Human Resource Management)
- NEP-LAB-2010-02-20 (Labour Economics)
- NEP-MIG-2010-02-20 (Economics of Human Migration)
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- Christian Dustmann & Itzhak Fadlon & Yoram Weiss, 2010.
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- 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).
- 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.
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