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What drives earnings of return migrants? Evidence from Latvia

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  • Hazans, Mihails

Abstract

This paper analyzes determinants of earnings of return migrants using very rich information on jobs and earnings in Latvia, as well as the foreign experience of more than 1000 returnees surveyed in 2016. After controlling for personal characteristics and hours worked, we find significant and sizable positive effects on returnees' earnings at the main job for various components of specific human capital accumulated abroad: duration of work abroad in a particular sector and occupation; any knowledge acquired abroad which is used at the job in Latvia; foreign experience in an occupation related to one's education or qualification; specific skills which make the respondent a difficult-to-replace employee at his workplace. These results hold true also after controlling for a rich set of job characteristics. By contrast, general experience accumulated abroad (proxied by duration of stay abroad) positively affects earnings in Latvia only for those return migrants who have completed abroad (in an EU or OECD country) some tertiary education. Higher education obtained abroad (in the EU or OECD) is shown to positively affect post-returning earnings through a number of other channels.

Suggested Citation

  • Hazans, Mihails, 2018. "What drives earnings of return migrants? Evidence from Latvia," MPRA Paper 118599, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:118599
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    return migrants; earnings; foreign experience; specific experience; general experience;
    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
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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