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The Dynamics of Return Migration, Human Capital Accumulation, and Wage Assimilation

Dustmann, C; Adda, J; Gorlach, S; (2022) The Dynamics of Return Migration, Human Capital Accumulation, and Wage Assimilation. The Review of Economic Studies , Article rdac003. 10.1093/restud/rdac003. (In press). Green open access

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Abstract

This paper develops and estimates a dynamic model where individuals differ in ability and location preference to evaluate the mechanisms that affect the evolution of immigrants’ careers in conjunction with their re-migration plans. Our analysis highlights a novel form of selective return migration where those who plan to stay longer invest more into skill acquisition, with important implications for the assessment of immigrants’ career paths and the estimation of their earnings profiles. Our study also explains the willingness of immigrants to accept jobs at wages that seem unacceptable to natives. Finally, our model provides important insight for the design of migration policies, showing that policies which initially restrict residence or condition residence on achievement shape not only immigrants’ career profiles through their impact on human capital investment but also determine the selection of arrivals and leavers.

Type: Article
Title: The Dynamics of Return Migration, Human Capital Accumulation, and Wage Assimilation
Location: UK
Open access status: An open access version is available from UCL Discovery
DOI: 10.1093/restud/rdac003
Publisher version: https://doi.org/10.1093/restud/rdac003
Language: English
Additional information: © The Author(s) 2022. Published by Oxford University Press on behalf of The Review of Economic Studies Limited. This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License (https://creativecommons.org/licenses/by-nc/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is properly cited. For commercial re-use, please contactjournals.permissions@oup.com
Keywords: F22 - International MigrationJ24 - Human Capital; Skills; Occupational Choice; Labor ProductivityJ61 - Geographic Labor Mobility; Immigrant Workers
UCL classification: UCL
UCL > Provost and Vice Provost Offices > UCL SLASH
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics
URI: https://discovery.ucl.ac.uk/id/eprint/10136132
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