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The labour market performance of young return migrants after the crisis in CEE countries: the case of Estonia

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  • Maryna Tverdostup

    (Faculty of Economics and Business Administration, University of Tartu, Estonia)

  • Jaan Masso

    (Faculty of Economics and Business Administration, University of Tartu, Estonia)

Abstract

This paper extends the earlier literature on the effects of return migration by studying selection and labour market performance in terms of the wages of young returnees in particular. The topic is motivated by various labour market issues for young people and their high exposure to the consequences of the recent financial crisis. We use Estonian Labour Force Survey data and Estonian Population and Housing Census 2011 data in combination with Estonian Tax and Customs Office data on individual payroll taxes. The econometric analysis focuses on the selection to temporary migration and the estimation of wage premium to return, along with the decomposition of the returnee-stayer wage gap using the Oaxaca-Blinder approach and an investigation of wage premium dynamics over time after return. The results generally show higher returns from temporary labour migration for young people relative to older people, and among youth, the share of the unexplained fraction of the wage premium is also higher. These results imply a stronger role of experience gained abroad on earnings for youth.

Suggested Citation

  • Maryna Tverdostup & Jaan Masso, 2016. "The labour market performance of young return migrants after the crisis in CEE countries: the case of Estonia," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 16(2), pages 192-220.
    • Handle: RePEc:bic:journl:v:16:y:2016:i:2:p:192-220
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    References listed on IDEAS

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    Cited by:

    1. Kowalewska Grażyna & Zabielska Izabela Iwona, 2023. "Factors Influencing the Tendency of Young People to Migrate Abroad – An Example From Northern Poland," Economic and Regional Studies / Studia Ekonomiczne i Regionalne, Sciendo, vol. 16(4), pages 640-655, December.
    2. Kata Fredheim & Marija Krumina & Anders Paalzow & Zane Varpina, 2022. "Back For Business: The Link Between Foreign Experience and Entrepreneurial Activity in Latvia," SSE Riga/BICEPS Research Papers 10, Baltic International Centre for Economic Policy Studies (BICEPS);Stockholm School of Economics in Riga (SSE Riga).
    3. Zane Varpina & Kata Fredheim, 2021. "What a manager wants: how return migrants’ experiences are valued by managers in the Baltics," SSE Riga/BICEPS Occasional Papers 12, Baltic International Centre for Economic Policy Studies (BICEPS);Stockholm School of Economics in Riga (SSE Riga).
    4. Grazyna Kowalewska & Lesław Markowski & Magdalena Wojarska & Nelson Duarte, 2021. "The Impact of Economic and Non-economic Factors on the Willingness to Migrate of Young People in the COVID-19 Pandemic Time," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 3), pages 291-302.

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    More about this item

    Keywords

    Return migration; labour market outcomes; Central and Eastern Europe;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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