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Self-selection and the performance of return migrants: the source country perspective

  • Augustin Coulon

    ()

  • Matloob Piracha

    ()

In this paper, using the framework of a Roy theoretical model, we examine the performance of return migrants in Albania. We ask two main questions: (i) Had they chosen not to migrate, what would be the performance of return migrants compared to the non-migrants? and (ii) What would be the performance of non-migrants had they decided to migrate and return? Both our estimates from a selection model and our semi-parametric approach allow us to conclude that the flows of return migrants are negatively selected. We find that, had they decided to migrate and come back, the non-migrants would have earned more than twice the wages of return migrants.

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File URL: http://hdl.handle.net/10.1007/s00148-005-0004-4
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Article provided by Springer in its journal Journal of Population Economics.

Volume (Year): 18 (2005)
Issue (Month): 4 (November)
Pages: 779-807

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Handle: RePEc:spr:jopoec:v:18:y:2005:i:4:p:779-807
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  1. Constant, Amelie F. & Zimmermann, Klaus F., 2003. "The Dynamics of Repeat Migration: A Markov Chain Analysis," IZA Discussion Papers 885, Institute for the Study of Labor (IZA).
  2. Dustmann, Christian, 1997. "Return migration, uncertainty and precautionary savings," Journal of Development Economics, Elsevier, vol. 52(2), pages 295-316, April.
  3. Chris Jarvis, 2000. "The Rise and Fall of the Pyramid Schemes in Albania," IMF Staff Papers, Palgrave Macmillan, vol. 47(1), pages 1.
  4. Borjas, George J, 1999. "Immigration and Welfare Magnets," Journal of Labor Economics, University of Chicago Press, vol. 17(4), pages 607-37, October.
  5. Catherine Y. Co & Ira N. Gang & Myeong-Su Yun, 2000. "Returns to returning," Journal of Population Economics, Springer, vol. 13(1), pages 57-79.
  6. Dustmann, Christian & Kirchkamp, Oliver, 2000. "The Optimal Migration Duration and Activity Choice after Re-migration," Sonderforschungsbereich 504 Publications 00-39, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
  7. Daniel Chiquiar & Gordon H. Hanson, 2002. "International Migration, Self-Selection, and the Distribution of Wages: Evidence from Mexico and the United States," NBER Working Papers 9242, National Bureau of Economic Research, Inc.
  8. van der Gaag, Jacques & Vijverberg, Wim, 1988. "A Switching Regression Model for Wage Determinants in the Public and Private Sectors of a Developing Country," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 244-52, May.
  9. George J. Borjas & Bernt Bratsberg, 1994. "Who Leaves? The Outmigration of the Foreign-Born," NBER Working Papers 4913, National Bureau of Economic Research, Inc.
  10. John DiNardo & Nicole M. Fortin & Thomas Lemieux, 1995. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," NBER Working Papers 5093, National Bureau of Economic Research, Inc.
  11. George J. Borjas, 1987. "Self-Selection and the Earnings of Immigrants," NBER Working Papers 2248, National Bureau of Economic Research, Inc.
  12. Dustmann, Christian, 2001. "Return Migration, Wage Differentials, and the Optimal Migration Duration," IZA Discussion Papers 264, Institute for the Study of Labor (IZA).
  13. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  14. Barry Chiswick, 1999. "Are Immigrants Favorably Self-Selected?," American Economic Review, American Economic Association, vol. 89(2), pages 181-185, May.
  15. Miguel León-Ledesma & Matloob Piracha, 2001. "International Migration and the Role of Remittances in Eastern Europe," Studies in Economics 0113, School of Economics, University of Kent.
  16. A. D. Roy, 1951. "Some Thoughts On The Distribution Of Earnings," Oxford Economic Papers, Oxford University Press, vol. 3(2), pages 135-146.
  17. Djajic, Slobodan, 1989. "Migrants in a guest-worker system : A utility maximizing approach," Journal of Development Economics, Elsevier, vol. 31(2), pages 327-339, October.
  18. repec:oup:restud:v:49:y:1982:i:3:p:355-72 is not listed on IDEAS
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