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Returns to migration, education and externalities in the European Union

  • Andrés Rodríguez-Pose
  • Vassilis Tselios

This paper uses microeconomic data for more than 100,000 European individuals in order to analyse whether the individual economic returns to education vary between migrants and non-migrants and whether any differences in earnings between these two groups 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 do not discriminate in the returns to education between migrants and non-migrants. Household, regional and supra-regional externalities influence the economic returns to education 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. Copyright (c) 2010 the author(s). Journal compilation (c) 2010 RSAI.

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Article provided by Wiley Blackwell in its journal Papers in Regional Science.

Volume (Year): 89 (2010)
Issue (Month): 2 (06)
Pages: 411-434

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Handle: RePEc:bla:presci:v:89:y:2010:i:2:p:411-434
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  1. Benoit Dostie & Pierre Thomas Léger, 2006. "Self-selection in migration and returns to unobservable skills," Cahiers de recherche 06-01, HEC Montréal, Institut d'économie appliquée.
  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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