IDEAS home Printed from https://ideas.repec.org/a/bic/journl/v16y2016i2p192-220.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/full/10.1080/1406099X.2016.1233729
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Alan Barrett & Philip J. O’Connell, 2001. "Is There a Wage Premium for Returning Irish Migrants?," The Economic and Social Review, Economic and Social Studies, vol. 32(1), pages 1-21.
    2. Zaiceva, Anzelika & Zimmermann, Klaus F., 2012. "Returning Home at Times of Trouble? Return Migration of EU Enlargement Migrants during the Crisis," IZA Discussion Papers 7111, Institute of Labor Economics (IZA).
    3. 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 Limited, vol. 35(6), pages 753-775, August.
    4. 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.
    5. 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.
    6. Anna Iara, 2006. "Skill diffusion by temporary migration? Returns to Western European working experience in the EU-accession countries," CERS-IE WORKING PAPERS 0607, Institute of Economics, Centre for Economic and Regional Studies, revised 30 Aug 2006.
    7. Enel Pungas & Ott Toomet & Tiit Tammaru & Kristi Anniste, 2012. "Are Better Educated Migrants Returning? Evidence from Multi-Dimensional Education Data," Norface Discussion Paper Series 2012018, Norface Research Programme on Migration, Department of Economics, University College London.
    8. Martin Kahanec & Brian Fabo, 2013. "Migration strategies of the crisis-stricken youth in an enlarged European Union," Discussion Papers 6, Central European Labour Studies Institute (CELSI).
    9. Anna Iara, 2006. "Skill Diffusion by Temporary Migration? Returns to Western European Working Experience in the EU Accession Countries," Development Working Papers 210, Centro Studi Luca d'Agliano, University of Milano.
    10. Jacqueline O’Reilly & Werner Eichhorst & András Gábos & Kari Hadjivassiliou & David Lain & Janine Leschke & Seamus McGuinness & Lucia Mýtna Kureková & Tiziana Nazio & Renate Ortlieb & Helen Russ, 2015. "Five Characteristics of Youth Unemployment in Europe," SAGE Open, , vol. 5(1), pages 21582440155, March.
    11. Hazans, Mihails & Philips, Kaia, 2011. "The Post-Enlargement Migration Experience in the Baltic Labor Markets," IZA Discussion Papers 5878, Institute of Labor Economics (IZA).
    12. 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;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 48(4), pages 196-235, July.
    13. Christian Dustmann & Yoram Weiss, 2007. "Return Migration: Theory and Empirical Evidence," RF Berlin - CReAM Discussion Paper Series 0702, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    14. Christian Dustmann & Yoram Weiss, 2007. "Return Migration: Theory and Empirical Evidence from the UK," British Journal of Industrial Relations, London School of Economics, vol. 45(2), pages 236-256, June.
    15. Martin Kahanec & Klaus F. Zimmermann (ed.), 2010. "EU Labor Markets After Post-Enlargement Migration," Springer Books, Springer, number 978-3-642-02242-5, June.
    16. Martin Kahanec & Lucia Mýtna Kureková, 2016. "Did Post-enlargement Labor Mobility Help the EU to Adjust During the Great Recession? The Case of Slovakia," Springer Books, in: Martin Kahanec & Klaus F. Zimmermann (ed.), Labor Migration, EU Enlargement, and the Great Recession, pages 189-218, Springer.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kureková, Lucia Mýtna & Žilin?íková, Zuzana, 2016. "What is the Value of Foreign Work Experience? Analysing Online CV Data in Slovakia," IZA Discussion Papers 9921, Institute of Labor Economics (IZA).
    2. Dustmann, Christian & Glitz, Albrecht, 2011. "Migration and Education," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), Handbook of the Economics of Education, edition 1, volume 4, chapter 0, pages 327-439, Elsevier.
    3. Merja Kauhanen & Mari Kangasniemi, 2014. "Returns to return migration: wage premium of Estonian return migrants from Finland," Working Papers 290, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    4. 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.
    5. Pille Motsmees & Jaan Masso & Raul Eamets, 2013. "The Effect of Migration Experience on Occupational Mobility in Estonia," Discussion Papers 14, Central European Labour Studies Institute (CELSI).
    6. Zaiceva, Anzelika & Zimmermann, Klaus F., 2012. "Returning Home at Times of Trouble? Return Migration of EU Enlargement Migrants during the Crisis," IZA Discussion Papers 7111, Institute of Labor Economics (IZA).
    7. Mayr Karin & Peri Giovanni, 2009. "Brain Drain and Brain Return: Theory and Application to Eastern-Western Europe," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 9(1), pages 1-52, November.
    8. Jaan Masso & Raul Eamets & Pille Mõtsmees, 2013. "The Effect of Temporary Migration Experience on Occupational Mobility in Estonia," CESifo Working Paper Series 4322, CESifo.
    9. Hazans, Mihails, 2018. "What drives earnings of return migrants? Evidence from Latvia," MPRA Paper 118599, University Library of Munich, Germany.
    10. Jack DeWaard & Jasmine Trang Ha & James Raymer & Arkadiusz Wiśniowski, 2017. "Migration from New-Accession Countries and Duration Expectancy in the EU-15: 2002–2008," European Journal of Population, Springer;European Association for Population Studies, vol. 33(1), pages 33-53, February.
    11. Amelie F. Constant, 2020. "Time-Space Dynamics of Return and Circular Migration: Theories and Evidence," CESifo Working Paper Series 8053, CESifo.
    12. Christian Dustmann & Joseph-Simon Görlach, 2016. "The Economics of Temporary Migrations," Journal of Economic Literature, American Economic Association, vol. 54(1), pages 98-136, March.
    13. repec:dau:papers:123456789/13140 is not listed on IDEAS
    14. Giovanni Peri & William Ambrosini & Karin Mayr & Dragos Radu, 2012. "The Selection of Migrants and Returnees in Romania: Evidence and long-run implications," Working Papers 136, University of California, Davis, Department of Economics.
    15. Philippe Wanner, 2021. "Can Migrants’ Emigration Intentions Predict Their Actual Behaviors? Evidence from a Swiss Survey," Journal of International Migration and Integration, Springer, vol. 22(3), pages 1151-1179, September.
    16. Martin Kahanec & Lucia Mýtna Kureková, 2016. "Did Post-enlargement Labor Mobility Help the EU to Adjust During the Great Recession? The Case of Slovakia," Springer Books, in: Martin Kahanec & Klaus F. Zimmermann (ed.), Labor Migration, EU Enlargement, and the Great Recession, pages 189-218, Springer.
    17. Philippe Wanner & Marco Pecoraro & Massimiliano Tani, 2021. "Does Educational Mismatch Affect Emigration Behaviour?," European Journal of Population, Springer;European Association for Population Studies, vol. 37(4), pages 959-995, November.
    18. Ambrosini, J. William & Mayr, Karin & Peri, Giovanni & Radu, Dragos, 2012. "The Selection of Migrants and Returnees in Romania: Evidence and Long-Run Implications," IZA Discussion Papers 6664, Institute for the Study of Labor (IZA).
    19. 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.
    20. Burzyński, Michał, 2018. "Time, Space, And Skills In Designing Migration Policy," Journal of Demographic Economics, Cambridge University Press, vol. 84(4), pages 355-417, December.
    21. Aguilar Esteva, Arturo Alberto, 2013. "Stayers and Returners: Educational Self-Selection among U.S. Immigrants and Returning Migrants," IZA Discussion Papers 7222, Institute of Labor Economics (IZA).

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bic:journl:v:16:y:2016:i:2:p:192-220. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Anna Zasova (email available below). General contact details of provider: https://edirc.repec.org/data/biceplv.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.