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The Dynamics of Return Migration, Human Capital Accumulation, and Wage Assimilation

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  • Jérôme Adda
  • Christian Dustmann
  • Joseph-Simon Görlach

Abstract

This paper develops and estimates a dynamic model where individuals differ in ability and location preference to evaluate the mechanisms that affect the evolution of immigrants’ careers in conjunction with their re-migration plans. Our analysis highlights a novel form of selective return migration where those who plan to stay longer invest more into skill acquisition, with important implications for the assessment of immigrants’ career paths and the estimation of their earnings profiles. Our study also explains the willingness of immigrants to accept jobs at wages that seem unacceptable to natives. Finally, our model provides important insight for the design of migration policies, showing that policies which initially restrict residence or condition residence on achievement shape not only immigrants’ career profiles through their impact on human capital investment but also determine the selection of arrivals and leavers.

Suggested Citation

  • Jérôme Adda & Christian Dustmann & Joseph-Simon Görlach, 2021. "The Dynamics of Return Migration, Human Capital Accumulation, and Wage Assimilation," CESifo Working Paper Series 9051, CESifo.
    • Handle: RePEc:ces:ceswps:_9051
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    References listed on IDEAS

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    Cited by:

    1. Christoph Albert & Albrecht Glitz & Joan Llull, 2021. "Labor Market Competition and the Assimilation of Immigrants," Working Papers 1280, Barcelona School of Economics.
    2. Kunz, Johannes S. & Zhu, Anna, 2023. "Welfare Reform and Migrant's Long-Term Labor Market Integration," IZA Discussion Papers 16285, Institute of Labor Economics (IZA).
    3. Christian Dustmann & Francesco Fasani & Tommaso Frattini & Luigi Minale & Uta Schönberg, 2017. "On the economics and politics of refugee migration," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 32(91), pages 497-550.
    4. Arendt, Jacob Nielsen & Dustmann, Christian & Ku, Hyejin, 2023. "Permanent Residency and Refugee Immigrants' Skill Investment," IZA Discussion Papers 16313, Institute of Labor Economics (IZA).
    5. Bertoni, Marco & Chattopadhyay, Debdeep & Gu, Yuanyuan, 2023. "Medical Brain Drain – Assessing the Role of Job Attributes and Individual Traits," IZA Discussion Papers 16243, Institute of Labor Economics (IZA).
    6. Matilda Kilström & Birthe Larsen & Elisabet Olme, 2023. "Temporary refugee protection and labor-market outcomes," Empirical Economics, Springer, vol. 65(4), pages 1895-1929, October.
    7. Maciej Duszczyk & Agata Górny & Paweł Kaczmarczyk & Andrzej Kubisiak, 2023. "War refugees from Ukraine in Poland – one year after the Russian aggression. Socioeconomic consequences and challenges," Regional Science Policy & Practice, Wiley Blackwell, vol. 15(1), pages 181-199, February.
    8. Jacob Nielsen Arendt & Christian Dustmann & Hyejin Ku, 2022. "Refugee migration and the labour market: lessons from 40 years of post-arrival policies in Denmark [‘The Dynamics of Return Migration, Human Capital Accumulation, and Wage Assimilation’]," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 38(3), pages 531-556.
    9. Joseph-Simon Görlach, 2023. "Borrowing Constraints and the Dynamics of Return and Repeat Migration," Journal of Labor Economics, University of Chicago Press, vol. 41(1), pages 205-243.
    10. Christian Dustmann & Yannis Kastis & Ian Preston, 2023. "Inequality and Immigration," CESifo Working Paper Series 10486, CESifo.
    11. Giacomo Battiston, 2022. "Rescue on Stage: Border Enforcement and Public Attention in the Mediterranean Sea," "Marco Fanno" Working Papers 0292, Dipartimento di Scienze Economiche "Marco Fanno".
    12. Arellano-Bover, Jaime & San, Shmuel, 2023. "The Role of Firms and Job Mobility in the Assimilation of Immigrants: Former Soviet Union Jews in Israel 1990–2019," IZA Discussion Papers 16389, Institute of Labor Economics (IZA).
    13. Monica BURESCU MIHĂILA & Paula Roxana CUCOȘ, 2023. "Implications of migration policies on reducing income inequalities and poverty in Europe," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(635), S), pages 23-42, Summer.
    14. Hannah Zillessen, 2022. "Uncertainty, Citizenship & Migrant Saving Choices," Economics Series Working Papers 1008, University of Oxford, Department of Economics.
    15. Jacopo Bassetto & Teresa Freitas Monteiro, 2024. "Immigrants’ Returns Intentions and Job Search Behavior When the Home Country Is Unsafe," CESifo Working Paper Series 10908, CESifo.
    16. Kai Fischer, 2023. "Skilled Labour Migration and Firm Performance: Evidence from English Hospitals and Brexit," CESifo Working Paper Series 10747, CESifo.
    17. Johannes Kunz & Anna Zhu, 2023. "Welfare Reform and Migrant’s Long-term Labor Market Integration," Papers 2023-05, Centre for Health Economics, Monash University.
    18. Joseph-Simon Görlach & Katarina Kuske, 2022. "Temporary migration entails benefits, but also costs, for sending and receiving countries," IZA World of Labor, Institute of Labor Economics (IZA), pages 503-503, November.

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    More about this item

    Keywords

    international migration; human capital; expectations;
    All these keywords.

    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
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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