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Selection, Selection, Selection: the Impact of Return Migration

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  • Jackline Wahba

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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 whilst 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 amongst migrants.

Suggested Citation

  • Jackline Wahba, 2015. "Selection, Selection, Selection: the Impact of Return Migration," CReAM Discussion Paper Series 1504, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  • Handle: RePEc:crm:wpaper:1504
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    References listed on IDEAS

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    Cited by:

    1. repec:spr:portec:v:16:y:2017:i:2:d:10.1007_s10258-017-0130-4 is not listed on IDEAS
    2. Ismael Issifou & Francesco Magris, 2017. "Migration outflows and optimal migration policy: rules versus discretion," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 16(2), pages 87-112, August.
    3. Tuccio, Michele & Wahba, Jackline & Hamdouch, Bachir, 2016. "International Migration: Driver of Political and Social Change?," IZA Discussion Papers 9794, Institute for the Study of Labor (IZA).
    4. Mahe, Clotilde, 2017. "Husbands' return migration and wives' occupational choices," MERIT Working Papers 031, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. Quinones, Esteban J. & Barham, Bradford L., 2018. "Endogenous Selection, Migration and Occupation Outcomes for Rural Southern Mexicans," Staff Paper Series 587, University of Wisconsin, Agricultural and Applied Economics.
    6. repec:eee:wdevel:v:95:y:2017:i:c:p:196-210 is not listed on IDEAS
    7. Ngoc Thi Minh Tran & Michael P. Cameron & Jacques Poot, 2017. "Local Institutional Quality and Return Migration: Evidence from Vietnam," Working Papers in Economics 17/10, University of Waikato.
    8. Nelly El-Mallakh & Jackline Wahba, 2016. "Upward or Downward: Occupational Mobility and Return Migration," Working Papers 1010, Economic Research Forum, revised Jun 2016.
    9. Brück, Tilman & Mahe, Clotilde & Naudé, Wim, 2018. "Return Migration and Self-Employment: Evidence from Kyrgyzstan," IZA Discussion Papers 11332, Institute for the Study of Labor (IZA).
    10. Anda David & Mohamed Ali Marouani, 2017. "Migration patterns and labor market outcomes in Tunisia," Working Papers DT/2017/03, DIAL (Développement, Institutions et Mondialisation).
    11. Jackline Wahba & Nelly El-Mallakh, 2017. "Return Migrants and the Wage Premium: Does the Legal Status of Migrants Matter?," Working Papers 1133, Economic Research Forum, revised 08 2017.
    12. Bensassi, Sami & Jabbour, Liza, 2017. "Return Migration and Entrepreneurial Success: An Empirical Analysis for Egypt," GLO Discussion Paper Series 98, Global Labor Organization (GLO).
    13. Mahé, Clothilde, 2016. "Skills and entrepreneurship: Are return migrants 'Jacks-of-all-trades'?," MERIT Working Papers 071, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    14. Matloob Piracha, 2015. "Occupational choice of return migrants," IZA World of Labor, Institute for the Study of Labor (IZA), pages 197-197, October.
    15. Anda David & Rana Hendy, 2016. "Does International Migration Help Them Marry earlier? A Hazard Model for the Case of Egypt," Working Papers 1051, Economic Research Forum, revised 09 Jan 2016.
    16. Adel Ben Youssef & Mohamed Arouri & Cuong Viet Nguyen, 2017. "Is Internal Migration A Way to Cope With Climate Change? Evidence From Egypt," Working Papers 1099, Economic Research Forum, revised 05 2017.
    17. Mahe, Clotilde, 2017. "Occupational choice of return migrants: Is there a 'Jack-of-all-trades' effect?," MERIT Working Papers 039, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    18. Fransen, Sonja & Ruiz, Isabel & Vargas-Silva, Carlos, 2017. "Return Migration and Economic Outcomes in the Conflict Context," World Development, Elsevier, vol. 95(C), pages 196-210.
    19. repec:spr:izamig:v:7:y:2017:i:1:d:10.1186_s40176-017-0092-4 is not listed on IDEAS

    More about this item

    Keywords

    International return migration; Wages; Developing countries;

    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

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