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Returns to Migration, Education, and Externalities in the European Union

Author

Listed:
  • Andrés Rodríguez-Pose

    (London School of Economics)

  • Vassilis Tselios

    (University of Newcastle upon Tyne, and Spatial Economics Research Centre (SERC), London School of Economics)

Abstract

Relatively little attention has been paid to the role that externalities play in determining the pecuniary returns to migration. This paper addresses this gap, using microeconomic data for more than 100,000 individuals living in the European Union (EU) for the period 1994-2001 in order to analyse whether the individual economic returns to education vary between migrants and nonmigrants and whether any observed differences in earnings between migrants and locals are affected by household and/or geographical (regional and interregional) externalities. The results point out that while education is a fundamental determinant of earnings., European labour markets – contrary to expectations – do not discriminate in the returns to education between migrants and non-migrants. The paper also finds that household, regional, and interregional externalities influence the economic returns to education, but that they do so in a similar way for local, intranational, and supra-national migrants. The results are robust to the introduction of a large number of individual, household, and regional controls.

Suggested Citation

  • Andrés Rodríguez-Pose & Vassilis Tselios, 2010. "Returns to Migration, Education, and Externalities in the European Union," Working Papers 2010.25, Fondazione Eni Enrico Mattei.
  • Handle: RePEc:fem:femwpa:2010.25
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    References listed on IDEAS

    as
    1. Benoit Dostie & Pierre Thomas Léger, 2006. "Self-selection in migration and returns to unobservable skills," Cahiers de recherche 06-01, HEC Montréal, Institut d'économie appliquée.
    2. Cecile Detang-Dessendre & Ian Molho, 2000. "Residence Spells and Migration: A Comparison for Men and Women," Urban Studies, Urban Studies Journal Limited, vol. 37(2), pages 247-260, February.
    3. Ana Ferrer & W. Craig Riddell, 2008. "Education, credentials, and immigrant earnings," Canadian Journal of Economics, Canadian Economics Association, vol. 41(1), pages 186-216, February.
    4. Benoit Dostie & Pierre Léger, 2009. "Self-selection in migration and returns to unobservables," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(4), pages 1005-1024, October.
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    Cited by:

    1. Andrés Rodríguez-Pose & Tobias D. Ketterer, 2012. "Do Local Amenities Affect The Appeal Of Regions In Europe For Migrants?," Journal of Regional Science, Wiley Blackwell, vol. 52(4), pages 535-561, October.
    2. Andrés Rodríguez-Pose & Vassilis Tselios, 2012. "Welfare Regimes and the Incentives to Work and Get Educated," Environment and Planning A, , vol. 44(1), pages 125-149, January.
    3. Paola Bertolini & Michele Lalla & Francesco Pagliacci, 2015. "School enrolment of first- and second-generation immigrant students in Italy: A geographical analysis," Papers in Regional Science, Wiley Blackwell, vol. 94(1), pages 141-159, March.
    4. Rodríguez-Pose, Andrés & Ketterer, Tobias & Castells-Quintana, David, 2015. "Do we follow the money? The drivers of migration across regions in the EU," REGION, European Regional Science Association, vol. 2, pages 27-45.
    5. Andrés Rodríguez-Pose, 2011. "Economists as geographers and geographers as something else: on the changing conception of distance in geography and economics," Journal of Economic Geography, Oxford University Press, vol. 11(2), pages 347-356, March.
    6. Simona Iammarino & Elisabetta Marinelli, 2012. "Education-Job (Mis)Matching And Interregional Migration: Italian University Graduates’ Transition To Work," Working Papers 8, Birkbeck Centre for Innovation Management Research, revised Sep 2012.

    More about this item

    Keywords

    Individual Earnings; Migration; Educational Attainment; Externalities; Household; Regions; Europe;

    JEL classification:

    • J - Labor and Demographic Economics

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