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The returns to migration and human capital accumulation pathways: non-metropolitan youth in the school-to-work transition

Author

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  • Francisco Rowe

    (University of Liverpool
    The University of Queensland)

  • Jonathan Corcoran

    (The University of Queensland)

  • Martin Bell

    (The University of Queensland)

Abstract

The school-to-work transition comprises a critical period of human capital development for young people. As school-to-work pathways become increasingly diverse and complex, there is growing evidence that transitions during this period significantly influence individual career trajectories and long-term earning capacities. For non-metropolitan youth, this period of the life course often involves migration to urban centres in the search for better educational and employment opportunities. Drawing on longitudinal data, this paper examines the influence of migration and school-to-work pathways on entry-level wages for non-metropolitan youth in Australia. Our results highlight that migration from non-metropolitan communities to urban centres leads to higher entry-level wages, but these wage gains are not immediate, rather they are realised at a period 3 years post-migration. Individuals remaining in non-metropolitan communities were found to experience pathways that lead to lower wage returns. Furthermore, unobserved attributes, such as motivation and aspirations, were found to be a major factor explaining the higher wage returns achieved by non-metropolitan migrants. Findings have important consequences for policy in their potential to contribute to new evidenced-based policy designed to entice the return of young people to non-metropolitan communities and ameliorate the long-standing net loss of young population from regional areas.

Suggested Citation

  • Francisco Rowe & Jonathan Corcoran & Martin Bell, 2017. "The returns to migration and human capital accumulation pathways: non-metropolitan youth in the school-to-work transition," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 59(3), pages 819-845, November.
    • Handle: RePEc:spr:anresc:v:59:y:2017:i:3:d:10.1007_s00168-016-0771-8
    DOI: 10.1007/s00168-016-0771-8
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    2. Özer İsmet Selçuk & Türk Umut, 2023. "How Does Quality of Life (QOL) Affect Attractiveness of Cities and Internal Migration in Turkey?," Economic Themes, Sciendo, vol. 61(1), pages 85-103, March.
    3. Ricardas Mileris, 2019. "Population Migration Flows in European Union: Economic Factors and Perspective Statistical Trends," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 17(2 (Summer), pages 163-188.
    4. Jiangsheng Chen & Gideon Bolt & Yiwen Wang & Xiaoli Feng & Xuke Li, 2021. "An Empirical Diagnosis of the School-to-Work Process for Rural and Agricultural Development in China," Sustainability, MDPI, vol. 13(2), pages 1-15, January.
    5. Miguel González-Leonardo & Aude Bernard & Joan García Román & Antonio López-Gay, 2022. "Educational selectivity of native and foreign-born internal migrants in Europe," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 47(34), pages 1033-1046.
    6. Mikaela Backman & Esteban Lopez & Francisco Rowe, 2021. "The occupational trajectories and outcomes of forced migrants in Sweden. Entrepreneurship, employment or persistent inactivity?," Small Business Economics, Springer, vol. 56(3), pages 963-983, February.
    7. Backman, Mikaela & Nilsson, Helena & Öner, Özge, 2021. "Career trajectories in retail and wholesale - A sequential approach," HFI Working Papers 17, Institute of Retail Economics (Handelns Forskningsinstitut).

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    More about this item

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education

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