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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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    File URL: http://www.tandfonline.com/doi/full/10.1080/1406099X.2016.1233729
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    References listed on IDEAS

    as
    1. Jaan Masso & Raul Eamets & Pille Mõtsmees, 2014. "Temporary migrants and occupational mobility: evidence from the case of Estonia," International Journal of Manpower, Emerald Group Publishing, vol. 35(6), pages 753-775, August.
    2. Pernilla Joona & Nabanita Gupta & Eskil Wadensjö, 2014. "Overeducation among immigrants in Sweden: incidence, wage effects and state dependence," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-23, December.
    3. Florin P. Vadean & Matloob Piracha, 2009. "Circular Migration or Permanent Return: What Determines Different Forms of Migration?," Studies in Economics 0912, School of Economics, University of Kent.
    4. Anna Iara, 2006. "Skill Diffusion by Temporary Migration? Returns to Western European Working Experience in the EU Accession Countries," wiiw Balkan Observatory Working Papers 69, The Vienna Institute for International Economic Studies, wiiw.
    5. Kahanec, Martin & Fabo, Brian, 2013. "Migration Strategies of the Crisis-Stricken Youth in an Enlarged European Union," IZA Discussion Papers 7285, Institute for the Study of Labor (IZA).
    6. Sue Maguire & Bart Cockx & Juan Dolado & Florentino Felgueroso & Marcel Jansen & Izabela Styczyńska & Elish Kelly & Seamus McGuinness & Werner Eichhorst & Holger Hinte & Ulf Rinne, 2013. "Youth unemployment," Intereconomics: Review of European Economic Policy, Springer;German National Library of Economics;Centre for European Policy Studies (CEPS), vol. 48(4), pages 196-235, July.
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    More about this item

    Keywords

    Return migration; labour market outcomes; Central and Eastern Europe;

    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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