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Brain Gain or Brain Waste? The Performance of Return Labor Migrants in the Ukrainian Labor Market

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  • Kupets Olga

Abstract

Return migration is an important channel through which international labor migration can have a direct positive effect on development of the sending country. Using the unique individual-level data set, this study identifies the main characteristics of return labor migration to Ukraine and analyzes the economic activities chosen by migrants after their return. Return migration to Ukraine is of limited scale, and it often occurs due to the temporary nature of employment abroad, family reasons or failed migration experience. Applying a multinomial probit model, we find that return migrants are more likely to find employment in the non-farm informal sector than in the formal sector compared to nonmigrants but this effect becomes insignificant when we correct for the sample selection into return migration. At the same time, return migrants are found to have higher probability of being nonemployed and this effect is stronger among returnees with re-migration intention. Overall, there is no strong evidence of “brain gain” from return labor migration in Ukraine.

Suggested Citation

  • Kupets Olga, 2011. "Brain Gain or Brain Waste? The Performance of Return Labor Migrants in the Ukrainian Labor Market," EERC Working Paper Series 11/06e, EERC Research Network, Russia and CIS.
    • Handle: RePEc:eer:wpalle:11/06e
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    Cited by:

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    2. Tom Coupé & Hannah Vakhitova, 2013. "Costs and Benefits of Labour Mobility between the EU and the Eastern Partnership Partner Countries. Country report: Ukraine," CASE Network Studies and Analyses 0464, CASE-Center for Social and Economic Research.
    3. Jaan Masso & Raul Eamets & Pille Mõtsmees, 2013. "The Effect of Temporary Migration Experience on Occupational Mobility in Estonia," CESifo Working Paper Series 4322, CESifo.

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    More about this item

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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