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Migrant Wages, Human Capital Accumulation and Return Migration

Author

Listed:
  • Joseph-Simon Gorlach

    (University College London)

  • Christian Dustmann

    (University College London)

  • Jerome Adda

    (European University Institute)

Abstract

This paper analyses the wage dynamics of migrants focussing on their human capital accumulation and how it is affected by potential return migration. We develop a life-cycle model describing labor market participation, wages, return decisions as well as two forms of human capital, work experience and cultural integration. The model is estimated using panel data and exploits elicited return intentions as well as realised ones. We show that return intentions are key to understand the decision to invest in various forms of human capital and to explain differential wage paths. We show that conventional estimation methods overstate returns to work experience, as they fail to take into account selective return migration but also selective investment in human capital.

Suggested Citation

  • Joseph-Simon Gorlach & Christian Dustmann & Jerome Adda, 2014. "Migrant Wages, Human Capital Accumulation and Return Migration," 2014 Meeting Papers 679, Society for Economic Dynamics.
    • Handle: RePEc:red:sed014:679
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    Cited by:

    1. Giesing, Yvonne & Battisti, Michele & Laurentsyeva, Nadzeya, 2018. "The Labour Market Integration of Refugees in Germany: Evidence from a Field Experiment," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181522, Verein für Socialpolitik / German Economic Association.
    2. Burzyński, Michał, 2018. "Time, Space, And Skills In Designing Migration Policy," Journal of Demographic Economics, Cambridge University Press, vol. 84(4), pages 355-417, December.
    3. Battisti, Michele & Giesing, Yvonne & Laurentsyeva, Nadzeya, 2019. "Can job search assistance improve the labour market integration of refugees? Evidence from a field experiment," Labour Economics, Elsevier, vol. 61(C).
    4. Ademmer, Esther & Akgüç, Mehtap & Barslund, Mikkel & Di Bartolomeo, Anna & Benček, David & Groll, Dominik & Hoxhaj, Rezart & Lanati, Mauro & Laurentsyeva, Nadzeya & Lücke, Matthias & Ludolph, Lars & R, 2017. "2017 MEDAM Assessment Report on Asylum and Migration Policies in Europe. Sharing responsibility for refugees and expanding legal immigration," MEDAM Assessment Report on Asylum and Migration Policies in Europe, Mercator Dialogue on Asylum and Migration (MEDAM), number 182239.
    5. Ying Zhao & Lin Zhang & Yuanping Lu & Bo Wen, 2023. "More Rights but Less Gains: Relaxed Birth Control Policy and the Loss for Women," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 31(2), pages 159-191, March.
    6. Poeschel, Friedrich, 2020. "Out there on your own: Absence of the spouse and migrants' integration outcomes," MPRA Paper 98993, University Library of Munich, Germany.
    7. Kaczmarczyk, Pawel & Tyrowicz, Joanna, 2015. "Winners and Losers among Skilled Migrants: The Case of Post-Accession Polish Migrants to the UK," IZA Discussion Papers 9057, Institute of Labor Economics (IZA).

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