Return migration, self-selection and labour market outcomes

The extensive literature has determined that migration is often temporary rather than permanent. Nevertheless, the topic of return migration continues to be inadequately investigated. This paper offers a chronological review of the literature analysing the impact of labour market outcomes on the return decision. In this regard, the authors investigated the causes of return while presenting the main theoretical and empirical findings on self-selection. The empirical literature indi-cates that the selection in the return phase is negatively correlated to the one of the emigration phase. Furthermore, the authors assessed the influence of return migration on the labour market outcomes, thus finding that the most evident ef-fects occur in the short run, while the market structure determines their length and magnitude. In this context, Central-Eastern Europe represents a suitable case study for the impact of returnees? activities on the domestic labour market. Whereas the findings suggest a positive outcome, more adequate re-integration policies could further enhance both regional and national economic growth.