IDEAS home Printed from https://ideas.repec.org/a/spr/jopoec/v28y2015i3p535-563.html
   My bibliography  Save this article

Selection, selection, selection: the impact of return migration

Author

Listed:
  • Jackline Wahba

    ()

Abstract

The evidence on the impact of return migration on the sending country is rather sparse, though growing. The contribution of this paper is in addressing various selectivity problems while quantifying the impact of return migration on wages of returnees using non-experimental data. Using Egyptian household-level survey data, I estimate the wages of return migrants controlling for several selectivity biases arising from emigration choice, return migration choice, labor force participation choice, and occupational choice following return. The findings provide strong evidence that overseas temporary migration results in a wage premium upon return, even after controlling for the various potential selection biases. However, the estimates underscore the significance of controlling for both emigration and return migration selections. Ignoring the double selectivity in migration would overestimate the impact of return migration on the wage premium of returnees, as migrants are positively selected relative to non-migrants, but returnees are negatively selected among migrants. Copyright Springer-Verlag Berlin Heidelberg 2015

Suggested Citation

  • Jackline Wahba, 2015. "Selection, selection, selection: the impact of return migration," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(3), pages 535-563, July.
  • Handle: RePEc:spr:jopoec:v:28:y:2015:i:3:p:535-563
    DOI: 10.1007/s00148-015-0541-4
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s00148-015-0541-4
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. John Gibson & David McKenzie, 2012. "The Economic Consequences of ‘Brain Drain’ of the Best and Brightest: Microeconomic Evidence from Five Countries," Economic Journal, Royal Economic Society, vol. 122(560), pages 339-375, May.
    2. 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.
    3. Gaulé, Patrick, 2014. "Who comes back and when? Return migration decisions of academic scientists," Economics Letters, Elsevier, vol. 124(3), pages 461-464.
    4. 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.
    5. Michel Beine & Fréderic Docquier & Hillel Rapoport, 2008. "Brain Drain and Human Capital Formation in Developing Countries: Winners and Losers," Economic Journal, Royal Economic Society, vol. 118(528), pages 631-652, April.
    6. Batista, Catia & Lacuesta, Aitor & Vicente, Pedro C., 2012. "Testing the ‘brain gain’ hypothesis: Micro evidence from Cape Verde," Journal of Development Economics, Elsevier, vol. 97(1), pages 32-45.
    7. Frédéric Docquier & Hillel Rapoport, 2012. "Globalization, Brain Drain, and Development," Journal of Economic Literature, American Economic Association, vol. 50(3), pages 681-730, September.
    8. Wahba, Jackline & Zenou, Yves, 2012. "Out of sight, out of mind: Migration, entrepreneurship and social capital," Regional Science and Urban Economics, Elsevier, vol. 42(5), pages 890-903.
    9. Philippe De Vreyer & Flore Gubert & Anne-Sophie Robilliard, 2010. "Are There Returns to Migration Experience? An Empirical Analysis using Data on Return Migrants and Non-Migrants in West Africa," Annals of Economics and Statistics, GENES, issue 97-98, pages 307-328.
    10. David Roodman, 2011. "Fitting fully observed recursive mixed-process models with cmp," Stata Journal, StataCorp LP, vol. 11(2), pages 159-206, June.
    11. Augustin Coulon & Matloob Piracha, 2005. "Self-selection and the performance of return migrants: the source country perspective," Journal of Population Economics, Springer;European Society for Population Economics, vol. 18(4), pages 779-807, November.
    12. Dustmann, Christian & Kirchkamp, Oliver, 2002. "The optimal migration duration and activity choice after re-migration," Journal of Development Economics, Elsevier, vol. 67(2), pages 351-372, April.
    13. David McKenzie & Steven Stillman & John Gibson, 2010. "How Important is Selection? Experimental VS. Non‐Experimental Measures of the Income Gains from Migration," Journal of the European Economic Association, European Economic Association, vol. 8(4), pages 913-945, June.
    14. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    15. David McKenzie & Caroline Theoharides & Dean Yang, 2014. "Distortions in the International Migrant Labor Market: Evidence from Filipino Migration and Wage Responses to Destination Country Economic Shocks," American Economic Journal: Applied Economics, American Economic Association, vol. 6(2), pages 49-75, April.
    16. Binzel, Christine & Assaad, Ragui, 2011. "Egyptian men working abroad: Labour supply responses by the women left behind," Labour Economics, Elsevier, vol. 18(S1), pages 98-114.
    17. McCormick, Barry & Wahba, Jackline, 2001. "Overseas Work Experience, Savings and Entrepreneurship amongst Return Migrants to LDCs," Scottish Journal of Political Economy, Scottish Economic Society, vol. 48(2), pages 164-178, May.
    18. repec:dau:papers:123456789/5128 is not listed on IDEAS
    19. repec:adr:anecst:y:2010:i:97-98:p:11 is not listed on IDEAS
    20. Marchetta, Francesca, 2012. "Return Migration and the Survival of Entrepreneurial Activities in Egypt," World Development, Elsevier, vol. 40(10), pages 1999-2013.
    21. Borjas, George J & Bratsberg, Bernt, 1996. "Who Leaves? The Outmigration of the Foreign-Born," The Review of Economics and Statistics, MIT Press, vol. 78(1), pages 165-176, February.
    22. John Gibson & David McKenzie & Steven Stillman, 2013. "Accounting for Selectivity and Duration-Dependent Heterogeneity When Estimating the Impact of Emigration on Incomes and Poverty in Sending Areas," Economic Development and Cultural Change, University of Chicago Press, vol. 61(2), pages 247-280.
    23. repec:ecj:econjl:v:122:y:2012:i::p:339-375 is not listed on IDEAS
    24. 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 of Labor Economics (IZA).
    25. Catherine Y. Co & Ira N. Gang & Myeong-Su Yun, 2000. "Returns to returning," Journal of Population Economics, Springer;European Society for Population Economics, vol. 13(1), pages 57-79.
    26. Alan Barrett & Jean Goggin, 2010. "Returning To The Question Of A Wage Premium For Returning Migrants," National Institute Economic Review, National Institute of Economic and Social Research, vol. 213(1), pages 43-51, July.
    27. Steffen Reinhold & Kevin Thom, 2013. "Migration Experience and Earnings in the Mexican Labor Market," Journal of Human Resources, University of Wisconsin Press, vol. 48(3), pages 768-820.
    28. Assaad, Ragui, 1997. "The Effects of Public Sector Hiring and Compensation Policies on the Egyptian Labor Market," World Bank Economic Review, World Bank Group, vol. 11(1), pages 85-118, January.
    29. Piracha, Matloob & Vadean, Florin, 2010. "Return Migration and Occupational Choice: Evidence from Albania," World Development, Elsevier, vol. 38(8), pages 1141-1155, August.
    30. 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).
    31. repec:adr:anecst:y:2010:i:97-98:p:14 is not listed on IDEAS
    32. Alice Mesnard, 2004. "Temporary migration and capital market imperfections," Oxford Economic Papers, Oxford University Press, vol. 56(2), pages 242-262, April.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    International return migration; Wages; Developing countries; F22; J24; O15; O53;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

    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:spr:jopoec:v:28:y:2015:i:3:p:535-563. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Springer Nature Abstracting and Indexing). General contact details of provider: http://www.springer.com .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.