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

Author

Listed:
  • Jérôme Adda

    (Bocconi University, BIDSA and IGIER)

  • Christian Dustmann

    (University College London and Centre for Research and Analysis of Migration)

  • Joseph-Simon Görlach

    (Bocconi University, BIDSA, CReAM, IGIER and LEAP)

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, "undated". "The Dynamics of Return Migration, Human Capital Accumulation, and Wage Assimilation," CReAM Discussion Paper Series 2111, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  • Handle: RePEc:crm:wpaper:2111
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    2. Albert, Christoph & Glitz, Albrecht & Llull, Joan, 2021. "Labor Market Competition and the Assimilation of Immigrants," CEPR Discussion Papers 16432, C.E.P.R. Discussion Papers.
    3. Christian Dustmann & Francesco Fasani & Tommaso Frattini & Luigi Minale & Uta Schönberg, 2017. "On the economics and politics of refugee migration," Economic Policy, CEPR;CES;MSH, vol. 32(91), pages 497-550.
    4. Joseph-Simon Görlach, 2021. "Borrowing Constraints and the Dynamics of Return and Repeat Migrations," CReAM Discussion Paper Series 2129, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    5. 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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