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An Economic Analysis of Return Migration

  • Christian Dustmann

    (University College London
    CEPR, London)

This paper develops a model which rationalizes the decision of a migrant to return to his home country, despite a persistent higher wage in the host country, and provides a careful analysis of the optimal duration in the host country. Three motives for a temporary migration are provided: Differences in relative prices in host- and home country, the possibility of accumulating human capital abroad which is only earnings-effective back home, and complementaries between consumption and the location where consumption takes place. The optimal duration in the host country is then investigated, and the analysis produces some surprising and unexpected results.

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Paper provided by University College London, Department of Economics in its series Discussion Papers with number 96-02 ISSN 1350-6722.

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Length: 24 pages
Date of creation: Jan 1996
Date of revision:
Handle: RePEc:wuk:ucloec:9602
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  1. Raffelhuschen, Bernd, 1992. "Labor migration in Europe : Experiences from Germany after unification," European Economic Review, Elsevier, vol. 36(7), pages 1453-1471, October.
  2. Rosen, Sherwin, 1972. "Learning by Experience as Joint Production," The Quarterly Journal of Economics, MIT Press, vol. 86(3), pages 366-82, August.
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